Cost Accounting.

RUNNING HEAD: Cost Accounting 0
Cost accounting

Cost Accounting 1
The cost is measured from the various observations. The cost measurement is part of
the routine activity. Every individual uses its own judgment in the measuring costs and is no
exception. There are various ways of measuring costs but the results cannot be compared.
The individuals are required to understand the various ways and draw concerns about the
knowledge in order not to commit mistakes. Sometimes the traditional methods are used by
the individuals as they are more used to it (Christ & Burritt, 2015). As per the cost,
measurement theory states that the human beings who commit faults and misapprehensions of
the rules will have an interest in misrepresenting cost values whenever probable. The
management in an organization can establish some guidelines for making sure that cost
measurement is done mainly in the same way by the individuals.
The parametric cost estimating can be utilized by the organization. It is a great
method for testing the consistency of cost figures and its aim is to compare costs which may
reveal discrepancies. It has a role in cleaning the databases (Schaltegger & Zvezdov, 2015).
On the other side, the cost information can be accumulated from various substances or
situations. The problems arising from cost do not have any comparison with other subjects.
There is no way to measure costs directly. It is an indirect procedure to measure cost and
sometimes tremendously indirect.

Cost Accounting 2
References
Christ, K. L., & Burritt, R. L. (2015). Material flow cost accounting: a review and agenda for
future research. Journal of Cleaner Production, 108, 1378-1389.
Schaltegger, S., & Zvezdov, D. (2015). Expanding material flow cost accounting.
Framework, review and potentials. Journal of Cleaner Production, 108, 1333-1341.