RhodesE_ACC7045-7.docx - Introduction The field of...

This preview shows page 1 - 2 out of 9 pages.

Introduction The field of accounting has changed over the past few years as well as the way the function of accounting is carried out. Within any business, accounting is a vital functioning and key role. A strong accounting system is needed on a daily basis for any type of business, especially in light of the most recent global financial crisis. Bookkeeping and accounting firms are reshaping and simplifying their work by taking advantage of the recent trends in cost accounting which I plan on discussing in this paper. Economic calculations rely on cost and many businesses depend on this data to make decisions. The cost data represents the actual pattern of resource consumption. However, the generalized theory behind cost accounting does not unravel the complexity of the accounting change when operating segments increase and cost structures shift. Regardless of accuracy cost determinations have an impact on our economy. For example, companies like Carrier and Whirlpool and how the cost and resources are reflected in the price of said product. Information technology has advanced the output from cost accounting which has set the standards based on market conditions for increased accuracy in regards to strategic and financial management. A more sophisticated approach is required when analyzing cost data because more times than not the resources used are bought in bulk based on serviceability. An Austrian journal writer (Taylor, 2014) stated in his recent journal article that " cost analysis needs to be more sophisticated in order to "slice and dice" cost data across diverse segments or objects” (Taylor, 2014 pg. 12). Competitive markets are embracing the new approaches to cost accounting and relying on the economic calculation as a fundamental means. Accounting information systems are continuing to experience dramatic changes based on the developments in information technology which has whipped out the need for any manual entries. There is an increased
Image of page 1

Subscribe to view the full document.

awareness on cost control and many industries such as fast food operations, hospitals, school districts, banks, airlines and even government agencies are now placing an emphasis on the need to venture into cost accounting when in the past that was not their focus. Many companies have installed computer-assisted methods to manufacture products, merchandise products, and provide services. These new technologies have had a substantial impact on cost accounting. For example, computer-assisted manufacture methods and robots have taken over the jobs of humans in some circumstances. It has been determined that the reduction in labor costs has decreased from the normal 20 to 40 percent of product costs to less than 5 percent in many highly automated settings (Taylor, 2014). The current settings in cost accounting requires far less work to track labor costs than in the traditional setting. On the other hand, in highly automated environments, cost accountants have had to become more sophisticated at determining the causes of manufacturing costs because these costs are no longer driven by labor.
Image of page 2
You've reached the end of this preview.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern