COST ACCOUNTING


Differences with the Financial Accounting Cost Accounting
Cost accounting is part of the talk about cost accounting in a broad sense. As we know that the purpose of financial accounting is to present the financial statements consisting of balance sheet, income statement, statement of retained earnings, and cash flows. Cost accounting as part of the financial accounting presents only some elements of the income statement eleman costs.
Accounting costs can be classified into two parts, namely (1) accounting costs associated with determining the cost of products and cost control are usually referred to cost accounting, and (2) accounting costs associated with making decisions that are usually called management accounting.

Definition and Classification of Costs
Cost Accounting is known in two terms, the cost (the cost / cost) and expense (cost / expense). Base price is a sacrifice that is measured in units of money in the form of a reduction of assets or liabilities to acquire goods or services that will provide benefits in the future. Cost is the cost of which has provided benefits are exhausted and exploited. In practice, the term cost is used for both the sense mentioned above.

Classification of costs:
A. Elements of the product (product cost):
a. Raw materials (direct materials)
Materials (materials) can be divided into raw materials and auxiliary materials (indirect materials). The raw materials are all materials that can be identified with the finished product, which can be traced to the finished product, and the largest part of production costs. Auxiliary materials are all materials not including raw materials.
b. Direct labor (direct labor)
Labor can be divided into direct labor (direct labor) and labor (indirect labor). Direct labor is all labor carry out the production process that can be traced to the finished product and is the largest part of labor costs. Indirect labor is any labor that can not be considered as direct labor costs.
c. Factory overhead (factory overhead)
Factory overhead costs are all costs other than raw material costs and direct labor costs. Therefore, the cost of factory overhead consists of cost of auxiliary materials, indirect labor costs, and other indirect production costs.

Sources: http://id.shvoong.com/business-management/accounting/1926668-akuntansi-biaya/ # ixzz1oq7OIjOK

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