Financial Education - The wonderful world of the cost accounting discipline

Today I bring you an article about the wonderful world of the discipline cost accounting, accounting is the discipline that teaches the rules and procedures to analyze, classify and record the recorded operations carried out by economic entities integrated by a single individual, or constituted under the form of companies.

On the other hand, cost accounting is a technique used to record the operations that economically affect an entity and that systematically and structurally produces financial information.

Some authors agree that cost accounting is an information system used to determine the cost incurred in carrying out a production process and how it is generated in each of the activities in which production takes place.

When we talk about cost accounting we refer to a branch of accounting that refers to the records and reports related to products, group of products or services, that is, to any economic activity, without being limited to productive enterprises or industries; in order to control and account for the movements of warehouses, verify the existence of goods (inventory taking), record production, determine production costs, guide the pricing policy, control the results of the productive activity.

To conclude this beautiful topic, cost accounting is also understood as any accounting technique or mechanics that allows calculating the cost of manufacturing a product or providing a service. It is considered a subsystem of general accounting, which is responsible for the detailed handling of information relevant to the manufacture of a product, for the determination of its final cost.