The Accounting Of Costs, Objectives, Purposes, Technical And Legal Bases

0 / 5. 0

The accounting of costs, objectives, purposes, technical and legal bases

Introduction

The test presented below refers to issues which are very interesting and in turn of great importance, such as cost accounting their definitions, objectives, legal bases, among other points mentioned within this work.

By cost accounting we understand that it is the one that is responsible for registering the operating costs of a business in such a way that, with production and sales data, management can use the accounts to find out the production costs and distribution costs inall companies or entities that occur these processes.

As far as companies correspond, whether they are large, medium or small, it is very important that a control be carried out since due to their relevance they contribute in a great way for decision making within these organizations, it should be indicated that these controls allow them toThese plan long -term economic projects.

“Cost techniques serve as a kind of guide to detect the way in which they are collected, classified, computed, register, accumulate, assign and inform the data of the operations that are carried out in an economic entity in themanufacturing or elaboration process of products that are being used at that time.”(Ramírez, García, & Pantoja, 2010) Page. 25

In the following pages it will be about addressing in a better way the aforementioned issues in order to be able to be clear and so they can help us throughout our career either as professionals or student.

Developing

For (Lawrence) cost accounting: “It is a process in which those general accounting principles will be used to facilitate the registration of the operating costs of a business in such a way that, with production and sales data, management can use the accounts to identify production costs and distribution costs, both per unit and in total one or all manufactured products or services provided, and the costs of other diverse functions of negotiation, withThe purpose of being able to achieve an economic, efficient and productive operation ".

Definition of costs

The definition of costs is linked in a certain part to the interpretation that each author can give to the same, as long as this definition is full of coherence and backed by foundations towards the subject discussed, that is why for (González, 2012): “The word costs has two basic meanings: in its first interpretation it tells us that it can be represented as the sum of efforts and resources that have been used to produce something;while for its second interpretation this refers to what sacrifices or moves instead of the chosen thing;In this case, the cost of an object is similar to what is willing to sacrifice or lose in order to obtain it ”.

On the other hand for (León, 2012) the definition of costs is: “That group of payments, obligations contracted, consumption, depreciation, amortizations and applications that can be applicable within a given period, with coherence towards those functions such as theproduction, distribution, administration and financing among others ”. As mentioned above, the definitions will be linked to how the person interprets the issue that is being discussed, as long as he can support his response with real and coherence tests.

Cost objectives

As for the objectives of the costs that can occur within the subject proposed in this essay we have the following:

  • Provide sufficient information, in a timely manner, which allows you to reach a consensus on what is the best decision to make.
  • Being able to produce information which may allow to help in the clear orientation corresponding to the previously planned topic, to the evaluation and control of the institutions of the institution or company.
  • Those unit costs must be established in this way to exercise management policies and for the purpose of evaluating the various inventories, among other objectives that this topic has.

Zamarrón (2006);Comments that cost accounting: "It is the process of measuring, analyzing and calculating and informing about the cost, profitability and execution of operations".

Therefore, we can say that cost accounting corresponds basically with the hoarding and interpretation of cost information, which is made of internal use through managers, in the assessment of inventories, planning, control and control anddecision making of the different institutions or companies.

Cost accounting purposes

Once the objective of cost accounting has already been mentioned, we will proceed to establish what is the purpose of the subject already mentioned for which we have that cost accounting is responsible for measuring, examining and showing financial and non -financial information that will befind present with the costs of acquiring or using the media of an entity. We can assume an example in which the cost of a product is defined according to cost accounting, which is directly related to the need to evaluate financial accounting inventories and the need for decision -making of administrative accounting.

The costs are associated with all types of organizations, whether these monetary or non -monetary, manufacturing, commercial and service purposes, this means that the different types of costs incurred and their way of classificationThey will basically depend on the type of organization that this process is carrying out.

It is also responsible for providing the information required for decision making and classifying, accumulating, controlling and even assigning costs.

Another important point of cost accounting is that it informs about existing costs, to calculate the utility, results status and value inventories (balance sheet)

According to (Palacios, 2013) “Cost accounting refers to the amounted and necessary complement of financial accounting, which presents as one of its objects to offer information on the facts at the most indicated time in order to make decisionsRegarding maximizing benefits or minimizing costs."

The purpose of cost accounting is:

  • Provide information to determine the value of inventories and the determination of results.
  • Provides data for the correct planning and control of the company’s operations. Provide data for the elaboration of the value of the costs, which will be allocated for the management and for decision making.

We can say, according to (Palacios, 2013) that cost accounting is a branch of administrative accounting that plays an outstanding role in financial reports, since product or service costs are an important component in determining income and inThe financial position of every organization. In general, cost accounting is related to the estimation of costs, allocation methods and determination of the cost of goods and services.

Technical bases applicable to cost accounting

According to (Basantes & Ramírez, 2015) indicates that: “Accounting is conducted through national, international and generally accepted principles that govern those work procedures in order to be able to carry them out in a clearer and more reliable way. General norms and concepts have evolved over time, to the point that they can be placed as a respectable systematic method.

Among the most prominent concepts are:

  • Entity
  • Realization
  • Accounting period
  • Business in progress
  • Sufficient revelation
  • Consistency
  • Double match
  • Costs." 

This type of deliveries or disbursements are associated with:

  • Direct materials
  • Direct labor
  • Indirect manufacturing costs

"Costing techniques have to be able to guarantee objectively and manage. 25.

Since the materials, raw material and labor are integrated and with this the manufacture of products are made, with their corresponding specifications and characteristics which will allow to give a monetary value to each unit produced.

Legal Bases

Among the standards that govern cost accounting in a particular way, we can find international accounting standards), IFRS (International Financial Information Standards), as well as we will find international public sector standards (NICSP).

In the public sector they also propose to obtain changes towards the different international standards. In this way, the International Federation of Accountants (IFAC) has the purpose of strengthening the profession and contributing to the public interest, promoting those norms previously already agreed for this sector which were determined through the International Standards Council of the Public Sector. With the proper incorporation of these norms, what you want. (Flórez, 2012)

All these standards including those mentioned in this essay are practically worldwide since what was always treated from the beginning is that in all corners of the world the same accounting language would be used to avoid problems or with functions or with functions.

conclusion

The cost accounting is responsible for classifying, accumulating, controlling and assigning costs to the products developed or services provided by a company or organization, which is why techniques must be carried out for the application of the same since it allows us to have a studydeeper than what produced by the company through the materials used the required labor and indirect manufacturing costs, all this helps organizations in decision making such as giving the appropriate monetary value to the units producedor at the service that these provide in order to have a utility that supports and generates income for the company.

References

  • Basants, s., & Ramírez, L. (2015). Technical university of Cotopaxi. Obtained from http: // repository.UTC.Edu.EC/Bitstream/27000/2102/1/T-UCC-3566.PDF
  • Cost accounting for administrative management. (2017). Miracle: Holguín S.A.
  • Flórez. (2012). publications.a classroom.Edu.co. Obtained from publications.a classroom.Edu.CO: https: // publications.a classroom.Edu.CO/INDEX.PHP/Visioncantable/ARTICLE/VIEWFILE/95/89
  • González, c. d. (2012). ally.org.mx. Obtained from Aliat.org.mx: http: // www.ally.org.MX/DIGITAL LIBRARIES/ECONOMIC_AD -ADMINISTRATIVE/HISTORICAL COSTS.PDF
  • Lawrence, w. B. (s.F.). academy.Edu. Obtained from Academia.Edu: https: // www.academy.EDU/7748234/CONCEPTS_DE_CONTABILITY_COSTOS_SEG%C3%9AN_ALGUNOS_Autores_1
  • León, o. P. (2012). ally.org.mx. Obtained from Aliat.org.mx: http: // www.ally.org.MX/DIGITAL LIBRARIES/ECONOMIC_AD -ADMINISTRATIVE/HISTORICAL COSTS.PDF
  • Palacios, m. L. (2013). Cost accounting I.
  • Pastrana, a. (2012). Cost accounting. Córdoba: El Cid Editor. Obtained from https: // ebookcentral.Proquest.com/LIB/ULEAMECSP/READER.Action?Docid = 3201850 & Query = Pastrana#
  • Ramírez, c., Garcia, m., & Pantoja, C. (2010). Fundamentals and Techniques of Cost. Cartagena: Free University. Obtained from http: // www.Unilibre.Edu.CO/Cartagena/PDF/Research/Books/CEAC/FUNDAMENTALS_YTECNICAS%20 DE%20COSTO.PDF

Free The Accounting Of Costs, Objectives, Purposes, Technical And Legal Bases Essay Sample

Related samples

Zika virus: Transmission form Introduction The Zika virus belongs to the Flaviviradae family, was found for the first time in a monkey called Rhesus febrile and in...

Zika virus: cases and prevention Introduction The World Health Organization (WHO) has confirmed that Zika is a virus caused through the mosquito bite which is...

Zeus The King of Greek mythology Introduction Zeus is the Olympic God of heaven and thunder, the king of all other gods and men and, consequently, the main figure...

Zeus's punishment to Prometheus Introduction Prometheus, punished by Zeus Prometheus, punished by Zeus. Prometheus is a ‘cousin’ of Zeus. He is the son of the...

Comments

Leave feedback

Your email address will not be published. Required fields are marked *