Essentials Of Cost Accounting For Health Care Organizations 3rd Edition by Steven Finkler, David Ward,Judith Baker

Question

Essentials Of Cost Accounting For Health Care Organizations 3rd Edition by Steven Finkler, David Ward,Judith Baker

النسخة 3الرقم المعياري الدولي: 978-0763738136

Essentials Of Cost Accounting For Health Care Organizations 3rd Edition by Steven Finkler, David Ward,Judith Baker

النسخة 3الرقم المعياري الدولي: 978-0763738136

تمرين 2

In order to design a good cost accounting system, what do you need to know?

التوضيح

موثّق

Cost accounting system refers to the framework which the firms use to eliminate the cost of their products. It is critical to estimate accurate cost of product for making the operations profitable. So, the Firm should know that which products would be profitable and which would not and it can be measured only when the firm has judged the correct cost of product, so for this purpose there is a need of good cost accounting system.
Following things should be considered to design good accounting system:
1. There should be a good knowledge of organization's structures, procedures and of all cost information.
2. Selection of a suitable cost technique according to the requirement of company's business.
3. Plans need to be formulated.
4. Proper methodologies should be there to treat scraps and waste.
5. Budgetary control technique is needed to compare the actual performance with the budgeted information to have better control on costs.