Originally, the label referred to ways of accumulating historical costs and tracing them to units of output, primarily for purposes of providing the inventory valuations used in balance sheets and income statements. Although cost accounting continues this important role, its boundaries extend far beyond the major financial statements. Cost accounting is generally indistinguishable from management or managerial accounting: its fundamental aim is to assist the manager in making a host of decisions. Decision making is, of course, the very essence of the management process.
Our motto: "If your books are out of balance, so are your decisions" displays across our website continuously. We believe this is a fundamental truth of business management. Unfortunately, paying attention to the debits and credits isn’t enough. When you have an inventory, it takes intimate knowledge of what is generating those debits and credits to ensure that your books truly are in balance.
My accounting training coupled with a background working for and with a great variety of manufacturing companies gives me the perspective and knowledge needed to assist you with all your cost accounting issues including, but not limited to:
• Defining overhead
• Product cost
• Overhead rate calculation
• Routings
• Bills of Material
• Variances: Direct labor, overhead, production, purchase price
• Price, Volume, Mix analysis
• Gross margin analysis
• Using standard costs
• Absorption costing
