For this reason, the managers understand the forces and weaknesses of the cost accounting systems, and participate in the evaluation and evolution of the cost measurement and administration systems. The cost accounting systems can be important sources of information for the managers of a company. Knowing the costs of the products is essential for decision-making regarding price and mix assignation of products and services. In the companies that try to have profits, the control of costs affects directly to them.
The control of the costs of the past, present and future is part of the job of all the managers in a company. The organizations and managers are most of the times interested in and worried for the costs. The cost-accounting system is the result of decisions made by managers of an organization and the environment in which they make them. Among the better decisions, the better performance of your organization, regardless if it is a manufacturing company, a bank, a non-profit organization, a government agency, a school club or even a business school. The accountants who handle the cost accounting information generate add value by providing good information to managers who are taking decisions.
Cost accounting information is commonly used in financial accounting information, but first we are concentrating in its use by managers to take decisions. Instead, the important criterion is that the information must be relevant for decisions that managers operating in a particular environment of business including strategy make. Since managers are taking decisions only for their own organization, there is no need for the information to be comparable to similar information from other organizations. Constant Item Purchasing Power Accounting Ĭost accounting information is designed for managers.
0 kommentar(er)
