ACTG 22: Cost Accounting and Control

Sir Lerry Martinez

Cost Accounting - technique or method for determining the cost of a project, process, or thing.

• A tool of both financial and management accounting.

• Applied in ALL business organization

Cost determination process: a) Cost accumulation b) Cost Assignment

Two reporting requirements in a business: Internal reporting and external reporting

Financial Accounting - preparation of of general-purpose financial reporting. (2018 International Accounting Standards Board)

Management Accounting -broader than financial accounting and cost accounting

• branch of accounting that provides information to to management that will assist in planning and controlling, performance evaluation, and decision-making.

Cost - amount of resources given up to acquire specific object or objective.

Expense - when cost has expired and has produced benefit

Loss - cost that expired without producing benefit