Financial Education - The wonderful world of the cost accounting discipline – Part 2
In this publication I will continue to expand content on cost accounting, remember that cost accounting generates information for internal and external use, and has to do with the determination of the cost of a specific product or activity.
We can then say that cost accounting allows to deduce the value of the product produced, taking into account all the elements that directly or indirectly influence or intervene in the production of the product.
Additionally, it facilitates the control and inventory of raw materials and finished products, facilitating the efficient use of materials and comparing prices.
The cost is an outlay made for the manufacture of a product or the provision of a service, in this respect the cash outlay that is made to acquire goods and services to be used for the production of other products, these can be grouped in different ways in order to control and investigate its accuracy.
In summary, cost is understood as the sum of the expenditures incurred by a person for the acquisition of a good or service, with the intention of generating an income in the future, i.e. it is a sacrifice of resources that is allocated to achieve a specific objective.
Hi @alaiza All the information required in cost accounting serves as a tool for the company
at a certain moment for decision making, for which the accounting of costs is a very helpful and useful tool in any business that is that is, because thanks to cost accounting they can be determined at any moment that the company needs to know how much it costs you to produce or sell a product, greetings and success
This is how cost accounting is a very helpful tool, even the success of a company is largely linked to an accurate accounting policy.