Cost and Management Accounting: Improving Cost and Cost Control Essay

Cost and Management Accounting: Improving Cost and Cost Control Essay

Length: 1894 words (5.4 double-spaced pages)

Rating: Term Papers

Open Document

Essay Preview

Cost and management accounting is an integral element in preparation of an entity’s financial reports. Cost accounting consists of various branches, including; job and process costing, absorption costing, traditional costing and activity based costing. An efficient costing system allows managers and other users of financial reports to make decisions to better the company, in reducing and stream-lining costs, to improve overall profits. The way in which managers achieve this can be a rigorous and time consuming task, however, if a costing system can be perfected, productivity and general cost reduction can be achieved and an overall more efficient operation of the business will ensue. This essay will critically discuss factors in which a business consider in deciding on a costing system to implement and operate when establishing a costing system.
A costing system, by definition:
“Costing system is that system in which we calculate different costs with different methods and also monitor cost for reducing wastage and misuse of resources.”
(SVtuition.org, 2014)
A costing system is made up of different elements which best suits a company’s operations. They have many elements that can be meshed into one system, and go hand in hand with one another. These methods include; Job costing, Process Costing, Absorption costing, Traditional costing and Activity based Costing
Costing systems are relevant and useful in practices today because they provide a more efficient way in which managers and CEO’s monitor and influence costs and cash flows of a business. Costing systems therefore, sometimes need to be specialised for various business sectors. This is because different businesses operate in different ways, for example, a clot...


... middle of paper ...


...pproach. Journal Of Corporate Accounting \& Finance, 23(3), 43--51.
Horngren, C., Datar, S., & Rajan, M. (2012). Cost Accounting (14th ed., pp. 324 - 331). England: Pearson.
Innes J, and Norris, G (1997), The use of activity-based information: a managerial perspective, CIMA.
Innes J and Mitchell, F (1998), A practical guide to activity based costing, Kogan Page/CIMA.
Managerial Accounting 6e. (n.d.). Retrieved from cambridgepub: http://www.cambridgepub.com/managerialaccounting_6e/MA_6e_CH02_Website.pdf
wiseGEEK,. (2014). What Are the Different Management Accounting Tools?. Retrieved 2 May 2014, from http://www.wisegeek.com/what-are-the-different-management-accounting-tools.htm
Vitez, O. (2013). What Are the Advantages & Disadvantages of Process Costing? Retrieved from Chron: http://smallbusiness.chron.com/advantages-disadvantages-process-costing-4098.html

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Management Information And Hierarchical Management Control Essay

- GRC What is GRC. GRC is an acronym that stands for governance, risk management, and compliance. GRC is the integrated collection of capabilities that enable an organization to reliably achieve objectives while addressing uncertainty and acting wisely. Governance describes the overall management approach where senior management direct and control the entire organization, using a mixture of management information and hierarchical management control structures. “Governance activities ensure that critical management information reaching the executive team is sufficiently complete, accurate and timely to enable appropriate management decision making, and provide the control mechanisms to ensur...   [tags: Management, Enterprise resource planning]

Term Papers
870 words (2.5 pages)

Improving Management Of Our Roadways With Vegetation Essay

- I have a question, why aren’t all of our roadsides filled with vegetation. In my recent experiences during a 24 hour road-trip, I was provoked to ask this question. Driving 1500 miles south to Texas, I was surprised to find that there were many areas of concrete medians, sandy shoulders, dirty ditches, and so on. And this was just one highway going across America. I can’t fathom how many miles of total roads are in this country. The main problem I am researching is carbon sequestration. I believe that improving management of our roadways with vegetation can help mitigate the effects of climate change due to CO2 in the air....   [tags: Carbon dioxide, Climate change, Management, Policy]

Term Papers
1031 words (2.9 pages)

History Of Management Accounting And Its Roles Essay

- ... In summary, the origin of management accounting was start at the early 19th century, but until 1880s, management accounting is not really appeared, it was just have the rudiment of management accounting. But that time, accounting management technology was developed. The history of management accounting between from the beginning of the 20th century to the 1950 's The development of management accounting in the 20th century begun at 1911, Taylor, F.W. who was the representative of the classical school in the western management theory, published 'The Principles of Scientific Management '....   [tags: Management accounting, Cost accounting]

Term Papers
1261 words (3.6 pages)

Cost Control in Health Maintenance Organizations Essays

- An HMO is an organized health care delivery system, which provides health care to its members through networks of doctors and hospitals. Rather than traditional health plans, HMO’s cost less. Two ways HMO’s control costs are: controlling hospital admission and length of stay, and by providing incentives to physicians. These two cost control methods are further examined by an article published by The National Bureau of Economic Research (2002). The article examines the incentives to physician strategy for reducing utilization cost....   [tags: health care, incentives, hospital admission, stay]

Term Papers
1307 words (3.7 pages)

The Quality Management Challenge Essay

- The Quality Management Challenge Fast and consistent corrective action and preventive action (CAPA) processes are central to maintaining regulatory compliance and improving the quality of your product and service. The reality, however, is that many organizations today are struggling to establish an effective product quality management system. They have geographically dispersed engineering and manufacturing environments where information about product quality is decentralized and inconsistent. This is further complicated by the fact that different locations, business units, and departments use completely separate processes to communicate and resolve product deficiencies....   [tags: risk management, quality control]

Term Papers
1249 words (3.6 pages)

Supply Chain Management : A Tool For Improving The Company 's Performance

- ... Moreover, it is seen as the contractual guarantee of providing the consumer with the best quality and safe product. In addition to that, GM is concerned about the human dignity, that is why special attention is paid to fair working conditions granted to all employees (General Motors, 2016). The current supply chain design and areas for improvement GM’s current supply chain is monitored by the global material and logistics controlling organizations that has managing and distributing the companies resources according to the company’s needs all over the globe....   [tags: Supply chain management, Inventory, Supply chain]

Term Papers
1211 words (3.5 pages)

Improving Inventory Management in Power Generation Company Essays

- ... It’s became the subject of maintenance that requires an ideal strategy. System Equipment Reliability Priority (SERP) is a new model to rank the equipment prioritization based on six parameters for system criticality ranking, one parameter for operational criticality ranking and one parameter for asset failure probability. The analysis calculation will generate a Maintenance Priority Index (MPI). MPI will provide information to the management about equipments which become the main focus (Wahyudi, 2009)....   [tags: inventory control models, ABC analysis]

Term Papers
1355 words (3.9 pages)

Management and Operations Management Theory Essay

- Management and Operations Management Theory ABSTRACT This paper defines the four functions of management and the operations management theory. It then provides an analysis of how the functions of management the operations management. THE FOUR FUNCTIONS OF MANAGEMENT Planning: It is an act of formulating a program for a definitive course of action. The management defines a goal and puts forward its strategies to accomplish the objectives defined. Organizing: To divide the work force into specific groups and giving each group a specific task....   [tags: Business Management Managing Essays]

Term Papers
1287 words (3.7 pages)

Quality Management Essay

- Health care organizations are always looking for ways to reduce cost, increase patient satisfaction, manage their operations effectively and especially improve the quality of their services due to fact that the health care environment continues to change dramatically. There are various understandings on what quality is. Kairong (2010) states that it can be refer to the process in which inspections are conducted to detect defects, the process in which products are produced to meet customer requirements, or it can be defined as customer satisfaction....   [tags: Business Management ]

Term Papers
1309 words (3.7 pages)

Logistics Management Essay

- Logistics Management “Logistic is the process of planning, implementing and controlling the efficient, effective flow of goods storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements” Logistics exists to satisfy customer requirements by facilitating relevant manufacturing and marketing operation. The main responsibility of logistic is the geographical positioning of raw materials, work in process and finished inventories at the lowest possible cost....   [tags: Logistics Management]

Free Essays
1675 words (4.8 pages)