Cost Accounting Report: Analysis and Business Applications

Verified

Added on  2023/04/07

|3
|292
|463
Report
AI Summary
This report delves into the realm of cost accounting, addressing the significance of cost measurement and its application in business contexts. It explores the methodologies used in measuring costs and the potential discrepancies that may arise. The report highlights the importance of standardized cost measurement practices within organizations and the use of tools such as parametric cost estimating to ensure consistency. Furthermore, it acknowledges the indirect nature of cost measurement and the challenges associated with it. The report also references relevant sources to support the findings. The author, an office manager at Broadmoor Utilities Inc. and an assistant manager at Murphy's USA, is pursuing a degree in Business Administration with a minor in Accounting, indicating a practical application of the concepts discussed.
Document Page
RUNNING HEAD: Cost Accounting 0
Cost accounting
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
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.
Document Page
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.
chevron_up_icon
1 out of 3
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]