Cost accounting; It is called the determination and control of every cost that may be encountered in the service delivery or product production process. The data subject to the cost calculations are obtained through the accounting system. It is not possible to prepare costs accurately and completely at every stage. Therefore, making accurate cost calculations is very important for enterprises and personnel working in the enterprise.
What are the objectives of cost accounting?
* Calculation of the actual cost of goods and services produced.
*Ensuring consistent and rational pricing of goods and services.
*To keep the costs and cost structure of the enterprise under constant supervision and control.
*To ensure that cost plans are determined according to statistical information.
*To make standard cost calculations in order to reduce the deviations between the predicted cost calculation and the cost. Standard costs are considered by averaging the developments experienced in the past depending on internal and external conditions.
*The averages of the forecasts and external conditions are taken as the basis for the success of standard costs.
In order to realise the production aimed with the 6 items above, 2 different methods are used.
These methods used are as follows:
*Retrospective Cost Analysis
*Future Cost Analysis
By using these methods, the enterprise should know the possible situations and act according to these situations.
With cost accounting, cost calculation is made according to the production stage.In this calculation process, all values in the production stage are considered.Costs according to the production stage are as follows:
Direct and Indirect Labour Costs
When cost accounting is performed in direct labour costs, how much labour is used in the production of which product is calculated. As a result of the calculations, the cost caused by labour is found. Wages and salary payments of foremen, foremen, auxiliary workers, supervisors and other production personnel working in the company are called indirect labour costs. Data such as pension fund, social security, health and accident insurance are considered as direct labour costs.
Direct and Indirect Material Costs
When calculating direct material cost, the cost of materials and materials used during the production of the product or service is calculated. If it is not calculated how much of which product enters the company, the cost caused by these materials is called indirect material cost. Indirect material cost is included in general manufacturing costs. Manufacturing Costs Manufacturing costs include all types of costs mentioned below.
These costs are as follows:
- Indirect labour cost
- Indirect material cost
- Indirect material costs
- Amortisations
- Rent price
- Tax cost
- Insurance expenses
- Energy and fuel costs
- Lighting expenses
- Research and development expenditure
- Non-Production Costs:
There are some additional costs that should be taken into account in determining the unit selling prices of products within the cost accounting process. These costs are called non-production costs in accounting since they are not related to production activities. These costs are analysed in 2 different groups.
These groups are as follows:
General Administrative Costs,
Costs of Sales.
What are the benefits of cost accounting?
*It is provided to draw a road map for companies in past and future plans. Therefore, an important contribution to planning is provided.
*It is ensured that the actual costs of the services and goods produced are determined.
*It keeps the costs used by the enterprise at all stages under control by considering the cost structure.
*Providing statistical information and costing plans to the company.
*Pricing of goods and services is more consistent and rational.
*Deviation values between expected costs and actual costs are determined. In this way, deviation values are ensured to be less
Cost accounting; It is called the determination and control of every cost that may be encountered in the service delivery or product production process.