Costing accounting: it involves the measuring, recording and reporting of product costs. From the data accumulated, companies determine both the total cost and the unit cost of each product. The accuracy of the product cost information produced by the cost accounting system is critical to the success of the company. Companies use this information to determine which products to produce, what price to change and the amounts to produce. Accurate product cost information is also vital for effective evaluation o f employees performance.Cost accounting system: It consists of accounts for the various manufaturing costs. These accounts are fully integrated into the general ledger of a company. An important feature of a cost accounting system is the use of a perpetual inventory system. Such a system provides immediate up-to-date information on the
This is the end of the preview.
access the rest of the document.