Cost Accounting Information

Information gathered by cost
accounting methods within an
organization make up most of
the detailed data used to create
managerial accounting reports
(and financial accounting
reports). Understanding the costs
associated with producing goods
and services is vital to the
decision-making process because
that comprehension can help
place a measurable value on the
results of a company's individual
decisions.
Four basic cost accounting
activities that support the
managerial accounting function
are
1. cost determination, which
involves determining the actual
cost of a product or an activity,
such as marketing;
2. cost recording, whereby costs
are recorded in journals and
ledgers;
3. cost analyzing, which refers to
accountants and managers
analyzing the data to help solve
problems and make plans; and
4. cost reporting, which entails
showing the costs in detail,
including showing how the costs
were measured, what
characteristics the costs have,
and what the costs actually
mean and how they should be
interpreted.