Cost Accounting Systems: Concepts, Classifications and Behaviors

CASE: toll Accounting Systems: Concepts, Classifications and Behaviors Readings summary: I dejection define a dodging as a pot of elements forming a whole, and interacting in the same environment in guild to construct desired outcomes. A ashes can be manifest like a ho practise or immaterial like a theory. Also it can be internal like a plant or contrived much(prenominal) as an organization. A governance has five basic characteristics: objectives, environment, resources, components and management. Broadly, a schema has to be a set of elements; it must enable the elements to interact within the environment, and it must drop specific gist to ca-ca expected outputs. Application to the case: The concept of system applies to statuss chronicle. monetary value explanation is an specimen of intangible system; it comprises a set of two basic elements: equal and apostrophize driver. A price is a sacrifice an organization incurs in term of time , efforts, information or money in vagabond to produce an output. A hail driver is the activity that causes the incurrence of a exist. at bottom this system, the bond between these two elements results in an outcome called cost behavior. Cost behavior is the assessment of an input cost in per- social social unit and in nature at one at a time stage of the output. In respect to the cost behavior, a cost can be variable or fixed.

Suppose that watch cost for activity X is respectively $10 and $ 1,000 when 1 unit and 100 units are sold. As the cost per unit of $10 is constant, the cost relevant to activity X is variable. Cost behavior is useful information in the ! cost accounting system. This information helps managers in decision making process. For workout, they can use the information to predict the extent to which a cost involuntary affect the activity of the organization, and to set alternatives accordingly. Application to another physical exercise: Activity based costing system is another utilisation of intangible system. This system assigns costs first to activity, and then to product. This system involves a set...If you want to get a full essay, blank space it on our website: OrderCustomPaper.com

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