Management Accounting Report: Hochtief Company's Financial Strategy

This report provides a comprehensive overview of management accounting principles and practices, focusing on their application within the Hochtief company. It delves into various management accounting systems, including cost accounting, inventory management, job costing, and price optimization, highlighting their benefits in enhancing operational efficiency and profitability. The report further explores different methods of management accounting reporting, such as budget reports, account receivable reports, performance reports, and cost reports, emphasizing their role in providing crucial financial information for internal decision-making. Additionally, the study analyzes and compares marginal costing and absorption costing techniques, demonstrating their impact on profit calculation and strategic decision-making. Through detailed analysis of financial data and practical examples, the report aims to equip readers with a thorough understanding of management accounting's significance in achieving sustainable growth and development for businesses.

Management Accounting

Table of Contents
INTRODUCTION...........................................................................................................................3
ACTIVITY 1....................................................................................................................................3
Methods of management accounting reporting......................................................................5
Management accounting techniques.......................................................................................6
ANNEX A..............................................................................................................................7
ANNEX B............................................................................................................................12
Particulars......................................................................................................................................13
Plan 1............................................................................................................................................13
Plan 2.............................................................................................................................................13
Plan 3.............................................................................................................................................13
ACTIVITY 2..................................................................................................................................14
Planning tools advantages and disadvantages......................................................................14
ANNEX C ...........................................................................................................................16
Comparison of ways in which management accounting is applied for confronting financial
problems...............................................................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Management accounting is an effective technique which produces internal financial
reports which aids managers of the organization in effective decision making. Management
accounting is an effective tool which helps in planning, decision making, strategic management,
etc. it helps managers in forecasting and analysing the future prospects for long term growth and
sustainability (Kaplan and Atkinson, 2015). It is an effective process of analysing and presenting
financial information to the internal managers on a regular interval for strategic decision making.
This is a report which is used by internal management for solving financial problems and finding
effective solution for long term sustainable growth.
This study will highlight, management accounting and the essential requirements of
various types of management accounting system. It will also highlight different methods which
are used in management accounting report. Further it will also effectively include various
management accounting techniques. This study will further include planning tools which are
used for budgetary control. It will further analyse the advantages and disadvantage of these
budgetary control tool which helps in decision making. Furthermore, this study will evaluate and
compare two organizations in order to effectively respond to various financial problems.
Furthermore this study will critically evaluate the importance of planning tools in solving
financial problem and lead organization to sustainable growth and development.
Hochtief company is a construction engineering company which focuses on building
various projects like highways, bridges, stations, etc.
ACTIVITY 1
Management accounting: It is an effective process which helps internal management of
the organization to analyse various financial statement in order to take necessary strategic
decision for long term sustainable growth of the business (Quattrone, 2016). Management
accounting helps in capital budgeting analysis, stock valuation, forecasting, new product
analysis, break even analysis, forecasting, helps in financial accounting and solving financial
problems which leads to long term sustainable growth. Management accounting helps in
enhancing the operations of the business by eliminating cost and reducing risk.
Management accounting systems

Management accounting systems helps in improvising the productivity of the
organization in order to reach higher profitability and market share for future growth and
development. This mainly focus on formulating of various reports which helps in strategic
decision making. Management accounting systems can be further classified into:
Cost accounting system: It is a framework which helps Hochtief company in estimating
the cost of the activities for profitability analysis, cost control and inventory valuation. Cost
accounting system helps in effectively determining the cost of various production departments.
This helps management of the organization to determine the cost of the product for profitable
operations (What is a Cost Accounting System?, 2019). It helps in determining the work- in-
progress, material inventory, finished goods to prepare financial statements.
The key elements of cost accounting system mainly comprises of material i.e., direct
material and indirect material, labour i.e., direct labour and indirect labour and overhead i.e.,
variable O/h and fixed O/h. Cost accounting techniques is an effective way to analyse and
determine the future expenses for production. Cost accounting system take into consideration
direct costing, which can be attributed to the production of the goods. It mainly comprises of
commission, wages, manufacturing expense, piece rate, etc.
Inventory management system: It is a management accounting system which helps in
tracking levels of stocks, sales, orders and deliveries. Inventory management system helps
management of the organization to determine the requirements and reordering gods without any
delay (Granlund and Lukka, 2017) . It helps in effective decision making regarding ordering and
managing production in an effective and efficient manner. Inventory management system helps
in managing the supply chain which helps in placing order in an effective and efficient manner.
This helps in collection of surplus material and effectively control the orders according to the
production level. Inventory management techniques mainly includes last in first out method
(LIFO), first in first out method (FIFO), stock review, ABC analysis, just in time method and
weighted average method.
Job costing system: It is an effective process which helps in analysing and predicting the
cost attached with each job carried out at the time of production. It focuses on accumulating cost
to each individual unit of the production. It helps management of the Hochtief company to keep
proper record and track expenses of each product. This helps in determining the cost of the

project in an effective manner. It is very important to evaluate the cost which eventually results
in effective estimation, financial reporting and strategic decision.
Price optimisation system: It is an effective tool which helps in determining the price of
the products ad services delivered by the organization. This helps management to meet the goals
and objectives of the company in order to maximize profits and revenues. This helps in analysing
the behaviour of the customer with the change in the prices and determine the demand and
supply of a particular product. This helps ion combining information of cost and inventory level
to determine the prices which lads to higher profitability and growth in the business. It can be
effectively used by the management to tailor the price for customer and analyse their behaviour
with the change in the price levels of products and services (Alptekinoğlu and Semple, 2016).
Benefits of management accounting system.
Management accounting system helps management of the Hochtief company in
controlling, organizing, coordinating and controlling various activities which leads to higher
sustainable growth of the organization. This also in improving the productivity and efficiency by
reaching higher economies of scale (Dekker, 2016). Management accounting system helps in
effectively determining the operations of the business. This also helps in reducing the cost,
optimally accumulate the price, inventory management which eventually enhances the market
share and profit. Theses management accounting system helps in better application and
effectively managing the plans and budget.
Methods of management accounting reporting
Management accounting reports are an effective tool which helps in understanding the
operations of the business with utmost accuracy and efficiency. Management accounting report
gives accurate information to the management which helps them in taking strategic decision in
an efficient manner (Maskell, Baggaley and Grasso, 2016). Management reports are very
important for the internal management like CEO, owners, management in order to find necessary
solution to the problem. Management accounting reports must be in compliance with various
principles and standards which shows true and accurate results.
Budget report: It is an effective tool which helps in evaluating the performance of the
company. This helps management to compare the actual results with the budgeted plan and in
case of any deviation necessary action will be taken. This helps in comparing the past
performance with the actual performance and take necessary action to achieve higher profit. This

helps in controlling the activities for future sustainable growth (Brown and et.al., 2016). Budget
report helps in estimating the revenue and cost for a particular period of time. This helps in
planning the future by controlling the variance with utmost accuracy.
Account receivable report: This report shows cash amount which are owed to the
company by individual and entities outside the company (Mills, 2018). If the account receivables
indicates that the receivables are being collected at a slower rate then it is set as a warning sign
for the business. This eventually leads to greater credit risk for the company. Account receivable
report is an asset for the company which keeps track of all the customers who owe money to the
company.
Performance report: The report will evaluate the performance of the company with
utmost efficiency in an orderly manner. This report gives detailed analysis of the project which
gives them clear picture of the operational efficiency of the Hochtief company. This report
provides all the data to the stakeholders in a detailed manner to take necessary decision with
utmost accuracy (Hopper and Bui, 2016). Performance report gives clear picture of the current
status of the project and analyse how much profit will this project earn.
Cost report: This report helps in identifying the cost related with the financial activities
of the business. This report determines the cost of each activity, products, services, projects and
processes (Labro, 2019). This helps management to control the cost in an efficient manner. Cost
report evaluates the income and expenses of the the particular activity which leads to higher
growth and efficiency of the business.
Management accounting techniques
Marginal costing: This technique evaluates the variation in the total cost with the change
in the level of production. This helps management of the Hochtief company in determining the
extra cost incurred while producing extra units at the time of production.
Advantages of Marginal costing
It is easy to determine and helps in controlling the cost of production. This also focuses
on eliminating the cost variance of the company because fixed overhead does not change. This
leads to better decision making and higher future growth of the organization.
Disadvantages of Marginal costing

It is very difficult to determine the degree of deviation because it does not take into
consideration all variable overheads. The marginal costing remains constant only for the short
duration of time.
Absorption costing:
Absorption costing takes into account all cost attached to the manufacturing process. This
includes direct cost, indirect cost to give accurate results and helps in strategic decision making.
Advantages of Absorption costing
Absorption costing is an effective method which helps in effective decision making and
also has less fluctuations in the profit margins (Absorption Costing: Meaning, Advantages and
Disadvantages, 2019). This method can determine profits more accurately by taking into account
all production cost.
Disadvantages of Absorption costing
This method is not beneficial in improvising the operations of the business. This method
can also skew the profits of the company. This method is difficult to compare different product
lines.
ANNEX A
RAW DATA: Period 1
Particulars Amount(£)
Production
Dining table 5000
chair 20000
Selling price
Dining table 590
chair 90
Direct material
Dining table 215
chair 20
Direct labour
Dining table 90
chair 30

Variable production O/H
Dining table 25
chair 5
Fixed cots 410000
Sales units
Dining table 4350
chairs 16000
production cost
Dining table 330
chair 55
fixed cost per unit 16.4
total production cost
Dining table 346.4
chair 71.4
Profit and loss statement under marginal costing method
Particulars Details Amount(£)
Sales revenue
Dining table 2566500
chair 1440000
4006500 4006500
less
Direct material 935250
Dining table 320000
chair 1255250 1255250
Direct labour 391500
Dining table 480000

chair 871500 871500
Variable production
overheads 108750
Dining table 80000
chair 188750 188750
2315500 2315500
Less-closing stock 214500
Dining table 220000
chair 434500 434500
Contribution 1256500
less- Fixed cots 410000
Net profit 846500
Income statement under absorption costing method
Particulars details Amount(£)
Sales revenue 2566500
Dining table 1440000
chair 4006500
less 4006500
Direct material 935250
Dining table 320000
chair 1255250 1255250
Direct labour 391500
Dining table 480000
chair 871500 871500

Variable production
overheads
Dining table 108750
chair 80000
188750 188750 2315500
less- Fixed cots 410000
Less-closing stock 410000
Dining table 225160
chair 285600 510760
510760
Net profit 770240
Interpretation: From the above profit and loss statement it has been summarized that,
the net profit of the company through marginal costing is 846500 and with absorption costing
technique is 770240. this states that the company is able to generate higher profits through
marginal costing technique because fixed cost is not considered. While in absorption costing, all
the cost is taken into consideration i.e., fixed cost, variable cost and overhead cost. Absorption
cost is an effective method as it will show true profits which will lead to effective decision
making.
RAW DATA: PERIOD 2
particulars Amount(£)
Production
Dining table 5200
chair 22000
selling price
Dining table 590
chair 90
Direct material
Dining table 215
chair 20

Direct labour
Dining table 90
chair 30
Variable production overheads
Dining table 25
chair 5
Fixed cots 482000
Sales units
Dining table 1700
chairs 19100
production cost (variable)
Dining table 330
chair 55
fixed cost per unit 17.72
total production cost (variable+fixed)
Dining table 347.7
chair 72.7
closing stock units==opening
stock+purchases-sales
Dining table
650
4000
opening stock
Dining table 4150
chair 6900
Income statement under marginal costing method

Particulars details Amount(£)
Sales revenue
Dining table 1003000
chair 1719000
2722000 2722000
less
Direct material
Dining table 365500
chair 382000
747500
Direct labour
Dining table 153000
chair 573000 726000
Variable production
overheads
Dining table 42500
chair 95500 138000 1611500
Less-closing stock
Dining table 1369500
chair 379500 1749000 1749000
Contribution -638500
less- Fixed cots 482000 482000
Net loss -1120500
Income statement under absorption costing method

Particulars details Amount(£)
Sales revenue
Dining table 1003000
chair 1719000
2722000 2722000
less
Direct material
Dining table 365500
chair 382000
747500
Direct labour
Dining table 153000
chair 573000 726000
Variable production
overheads
Dining table 42500
chair 95500 138000
1611500 1611500
less- Fixed cots 482000 482000
Less-closing stock
Dining table 1443040
chair 501772
1944813 1944813
Net loss -1316313
Interpretation: From the above profit and loss statement it has been summarized that, for
the period 2 company has incurred a loss. Through marginal costing technique net loss is of
£1120500 and through absorption costing technique net loss is of £1316313. the company has
incurred higher losses in case of absorption costing. The profit and loss statement clearly

indicates that the organization is producing large number of units and they are not able to regain
the cost which eventually leads to loss for the period 2.
ANNEX B
Plan 1 Plan 2 Plan 3
Particulars 500 Units @£70
each
650 Units @£63
each
800 Units @£80
each
Sales 35000 40950 64000
Less- Variable
Cost
14200 14200 14200
Material (100%
Variable)
12000
Labour
(8000*25%)
2000
Selling Cost
(2000*10%)
200
Contribution 20800 26750 49800
Less- Fixed Cost 14800 14800 14800
Labour
(8000*75%)
6000
Selling Cost
(2000*90%)
1800
Other Cost 7000
Profit 6000 11950 35000

Particulars Plan 1 Plan 2 Plan 3
Selling Price 70 63 80
Variable Cost 28.4 21.84 17.75
Contribution Margin =
Price of Product – Variable
Costs
41.6 41.16 62.25
Break-Even Point (sales
dollars) = Fixed Costs ÷
Contribution Margin
355.77 359.57 237.75
Interpretation: From the above profit and loss statement it has been summarized that,
the company is selling 800 units at Rs. 80. the plan 3 has generated high amount of profit. The
break even point of the plan 3 is at the lowest i.e., 237.75 which states the company is generating
higher profits. The break even point of the company states that, the organization is able to cover
the cost of production ad generate high profit.

ACTIVITY 2
Planning tools advantages and disadvantages
Planning tools are the instruments which assists the organisations in formulating plan and
different kinds of organisational operations effectively. There are various kinds of planning tools
which an organisation applies for carrying out its activities. They are described below:
Budgetary control :
It is considered as a procedure of establishing performance and financial standards in
relation to budgets wherein the actual performances are measured and are compared against the
set standards for the purpose of finding out any deviation in the performances so that corrective
steps could be taken. This is one of the planning tool which is commonly used by the
organisations (Mack and Goretzki, 2017). Budgets are the base in this tool through which
company sets its financial and performance objectives and prepares strategies for achieving the
intended results. Various types of budgets are prepared by company that are mentioned below:
Sales budget :
In a simple language, sales budget can be defined as plan which stipulates estimated or
budgeted sales for the future. These budgets are commonly segregated into quarter-wise
estimation. This planning tool is often used by company for making decisions regarding its sales
volume. The aim of sales budget is to forecast and control the expenses that would be incurred
on organisational resources such as man, machine, money etc., which are essential for attaining
the desired objective of sales level. Its purpose is to leverage and maximize company's revenue
and profits (Berry, Broadbent and Otley, 2019.). Management after thorough research regarding
market conditions, position of competitors in market, selling and distribution expenses and
manufacturing capacity when it creates a sales budget. Following are the benefits and drawbacks
of sales to the company :
Benefits :
 Sales budget helps the business entity in managing and controlling its selling and
distribution expense very effectively. It leads to better decision making regarding sales, production and marketing.
Drawbacks :

 Preparing a sales budget is a time intensive job. Forecasting of the sales depends on
various factors such as market circumstances, market forces, competition etc., which
takes significant time to complete the forecasting (The Disadvantages of Sales
Forecasting, 2019). Preparation of the budget is subject to internal biases and it is a huge challenge for the
management to not affect the forecasting with judgemental views and biases
unnecessarily.
Production budget
This budget is a result sales budget and the forecasted amount of inventory of finished
goods. This budget states the detail information regarding the number of units of company's
goods which shall be manufactured during an accounting period in the future. It is created either
on monthly basis or on quarterly basis.
Benefits :
 Developing a production budget helps the business organisation in planning its
productivity activity with more discretion. It aids in cost reduction in the production process by decreasing the possibility of
unnecessary production which exceeds the demand of goods significantly. This leads to
cost effectiveness in the total production process of the company which eventually helps
in attaining the organisational goals of business.
Drawbacks :
 Creating a comprehensive production budget is a tedious job which consumes
organisational resources significantly.
 It leads to lack of flexibility. Production process relies on various factors in which
changes takes place very quickly that becomes very complex job to incorporate such
changes in the production scheduling (Apostolides, 2016).
Cash flow budget :

This can be defined as the process of estimating the cash that will be generated and cash
which will be used for different activities for a future accounting period. In other words, it
means forecasting of the cash inflows and outflows of an organisation.
Benefits:
 It aids in avoiding the unnecessary debt liabilities. It also leads to planning for keeping
the cash for contingent liabilities and situations that could occur in business. It leads to communication of the financial health of the company in terms of its liquidity
potential.
Drawbacks :
 Cash budgets are subject to manipulation which could lead to distorting results.
 It uses historical data for estimating the future cash inflows and outflows which might not
always facilitates accurate and real results.
ANNEX C
Q.3 Calculation of NPV and Payback period
NPV :
NPV is the net present value of the cash inflows that would be generated in the future
from an investment or a project. It is basically the difference between the discounted cash
inflows and initial investment made by the company (Otley, 2016).
Year Project X Project Y
Discounting
factor
Discounted
value of
project X
Discounted
value of
project Y
1 2500 1500 0.893 2232.14 1339.29
2 1000 2000 0.797 797.19 1594.39
3 1000 2500 0.712 711.78 1779.45
4 500 1000 0.636 317.76 635.52
5 1500 1000 0.567 851.14 567.43
6 1000 2500 0.507 506.63 1266.58
Total cash 5416.65 7182.65

inflow
Less : Initial
investment 5000 8000
NPV 416.65 -817.35
From the above calculation, it can be seen that net present value of project X is positive
416.65 while NPV of project Y is negative 817.35. It is advisable to the company that it should
accept the project X instead of project Y because X project will yield profits to the organisation
while accepting of Y project means that it will make loss of 817.35 in the present time.
Payback period :
It refers to the time which an investment or project will require for recovering its initial
costs in terms of savings or profitability (Harding, 2017).
Year Project X Project Y
Discounted
value X
Cumulative
cash inflows
Discounted
Value Y
cumulative
cash inflows
1 2500 1500 2232.140 2232.14 1339.29 1339.29
2 1000 2000 797.190 3029.33 1594.39 2933.68
3 1000 2500 711.780 3741.11 1779.45 4713.13
4 500 1000 317.760 4058.87 635.52 5348.65
5 1500 1000 851.140 4910.01 567.43 5916.08
6 1000 2500 506.630 5416.64 1266.58 7182.66
Formula : Years before entire recovery+ Initial cost- unrecoverable cost/cash inflow for that
year
Pay back period of X = 6+(5000-4910.01)/1000
= 6.09 years

Pay back period of Y = cost cannot be recovered in 6 years as initial investment is 8000 and the
total discounted cash flow is 7182.66 which means that funds spent on project Y would be
recover after 6 years.
Thus, it is advisable to Hot-chief UK construction to opt for project X as it is taking less
time than Y to recover the full amount of investment.
Comparison of ways in which management accounting is applied for confronting financial
problems
There are various technique of management accounting which different organisations use
for dealing with their financial problems. They are discussed below:
Benchmarking :
It can be described as the procedure of measuring and evaluating the company's
performance in terms of its products, processes, employees, etc., with those standards of
organisations which are regarded as the best in the industry. The Austin Company of UK Ltd
which is a competitor of Hot-chief applies this method for dealing with this business problems.
This technique helps in the managers in improvising the processes and performance of the
organisation. Along with this, it also aids in extracting the root cause of problems that are
affecting the probability and financial stability of the business organisation.
However, this tool is insufficient in measuring overall effectiveness of the business
entity. The problem with this technique is that it provides the base or standard for comparing the
actual performance with industry's best performance but it does not lay down the circumstances
under which the rival firms attained those standards (D'Onza, Greco and Allegrini, 2016).
Variance analysis :
It is a method applied by companies for comparing and evaluating their planned
performances with the actual results of the business. In here, the comparison is done with the
standards of the company itself, unlike benchmarking in which the actual performance was
compared against the standards of the industry. Adoption of this tool of management accounting
aids the managers in detecting the major variations in the actual results of the business which is
then fixed for correcting those variations. It also facilitates managers in formulating new tactics
and strategies for dealing with their financial crisis in the business.

However, the problem with this techniques is that it consumes lot of time and cost of the
organisation. Also, another major limitation of the variance analysis is that it cannot be
efficiently used in the service organisation because large portion of cost comprises overheads
instead of production expenses. Thus, meaning decisions could not be drawn from this method
for dealing with this financial problems.
Key performance indicators :
This is method applied by the managers of an organisation for evaluating each and every
material aspect of the business operations such as success, employees, etc. High level of the KPIs
emphasises on measuring and evaluating the performance of the overall success of the business
concern while low level KPIs emphasises on measuring and evaluating the performance of
departments of company, employees etc.
This is commonly applied technique of management accounting which the managers use
for confronting the financial problems of their organisations. This is because it facilitates
platform for the strategies for the future business operations, it leads the facility of aligning the
different aspects of the business organisation towards common goals and objectives. Further, it
improves the quality of decision-making and directs the behaviour of individuals in a positive
direction (Jenkins and Williamson, 2015).
Thus, Hot-chief shall apply this technique of management accounting for measuring and
evaluating its performance through which it can develop more effective strategies from which
the financial problems of the company could be resolved more conveniently.
CONCLUSION
From the above conducted study it has been summarized that, is a process which helps
internal management to take necessary strategic decision. It includes management accounting
system such as Cost accounting system, Inventory management system, Job costing system and
Price optimisation system. It further highlights Management accounting reports such as Budget
report, Account receivable report, Performance report and cost report. It further includes,
management accounting techniques, planning tools for budgetary control and comparison of two
organizations to solve financial problems.

REFERENCES
Books and journals
Alptekinoğlu, A. and Semple, J.H., 2016. The exponomial choice model: A new alternative for
assortment and price optimization. Operations Research.64(1). pp.79-93.
Apostolides, N., 2016. Management Accounting for Beginners. Routledge.
Berry, A. J., Broadbent, J. and Otley, D. T., 2019. Management control theory. Routledge.
Brown, J.L and et.al., 2016. The effect of budget framing and budget-setting process on
managerial reporting. Journal of Management Accounting Research. 29(1). pp.31-44.
D'Onza, G., Greco, G. and Allegrini, M., 2016. Full cost accounting in the analysis of separated
waste collection efficiency: A methodological proposal. Journal of environmental
management, 167, pp.59-65.
Dekker, H.C., 2016. On the boundaries between intrafirm and interfirm management accounting
research. Management Accounting Research. 31. pp.86-99.
Granlund, M. and Lukka, K., 2017. Investigating highly established research paradigms:
Reviving contextuality in contingency theory based management accounting
research. Critical Perspectives on Accounting.45. pp.63-80.
Harding, S., 2017. MBA management models. Routledge.
Hopper, T. and Bui, B., 2016. Has management accounting research been critical?. Management
Accounting Research. 31. pp.10-30.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis. Routledge.
Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.
Labro, E., 2019. Costing Systems. Foundations and Trends® in Accounting.13(3-4), pp.267-
404.
Mack, S. and Goretzki, L., 2017. How management accountants exert influence on managers–a
micro-level analysis of management accountants’ influence tactics in budgetary control
meetings. Qualitative Research in Accounting & Management, 14(3), pp.328-362.

Maskell, B.H., Baggaley, B. and Grasso, L., 2016. Practical lean accounting: a proven system
for measuring and managing the lean enterprise. Productivity Press.
Mills, D., 2018. Financial Reporting: A Case Study Analysis (Doctoral dissertation, The
University of Mississippi).
Otley, D., 2016. The contingency theory of management accounting and control: 1980–
2014. Management accounting research, 31, pp.45-62.
Quattrone, P., 2016. Management accounting goes digital: Will the move make it
wiser?. Management Accounting Research. 31. pp.118-122.
Online
Absorption Costing: Meaning, Advantages and Disadvantages. 2019. [ONLINE]. Available
through:<http://www.accountingnotes.net/cost-accounting/absorption-costing/absorption-
costing-meaning-advantages-and-disadvantages/5871>
The Disadvantages of Sales Forecasting.2019. [Online]. Available through
<https://bizfluent.com/list-6718278-disadvantages-sales-forecasting.html>
What is a Cost Accounting System?. 2019. [ONLINE]. Available
through:<https://www.myaccountingcourse.com/accounting-dictionary/cost-accounting-
system>