Learn cost accounting

Learn cost accounting


  • 1 Find out about cost accounting
  • 2 historical overview of cost accounting
  • 3 goals accounting costs 3.1 determine the unit cost of producing or service 3.2 cost control 3.3 help in deciding the pricing of products and services 3.4 rationalization of administrative decisions
  • 3.1 determine the unit cost of producing or service
  • 3.2 cost control
  • 3.3 help in deciding the pricing of products and services
  • 3.4 rationalization of administrative decisions

Learn cost accounting

Cost accounting emerged as a branch of accounting that are used to service facilities in the areas of planning, implementation management, monitoring, and writing financial and submitting lists of foreign destinations, where interested in cost accounting to collect all cost data recording and classifying them, in order to provide information and ample for the used cost by management .

Historical Overview of Cost Accounting

The date of appearance accounting back costs to the era of the Pharaohs, it was found that they were following certain systems of special procedures in the agricultural and architectural activities, the most famous stories that indicate the date of cost accounting the story of Joseph peace be upon him, where to talk about inventory control house located during the years of prosperity for the boot for distribution during the lean years, also appeared cost accounting system in Islam, it has placed the Caliph Omar ibn al-Khattab Office of Finance House, as the separation between the fixed assets, traded assets, as well as to set a way to restrict and control the zakat offering in my eyes.

Cost accounting goals

Determine the unit cost of producing or service

The main objective of cost accounting, which can be the institution to determine the results of its projects and its work during a specific Zminh period, which helps the company ultimately to determine the financial position in the last this specific period, helping this process to determine the selling price of products during the period of recession and normal periods , appropriate for tenders and prices, the cost of inventory units of the process that has been produced and the need to follow the following steps:

  • Counting all products and determine the nature and specifications.
  • Study of all types and sequence of industrial stages of the process that take place during the production stage, in addition to the inventory centers operating.
  • Data relating to the elements of the collection costs, from documents and notices and use of materials costs and employment, in addition to the costs of purchasing services and production.
  • Cost component analysis, in order to load the item of units produced.

Cost control

Are intended to achieve efficiency in the recruitment of production, such as factors: material and personnel, machinery, in addition to providing the data needed by management, by comparing the actual costs of a certain period with previous costs, so that the ultimate goal of cost control reduced in order to contribute to the search continuously on the best ways to exploit all available resources.

To assist in deciding the pricing of products and services

Institutions are working to determine the prices of their products in a way to ensure a financial surplus after covering all costs spent during the production phase, and an accountant working costs to provide data to help management to identify these prices on the scientific rationalization structure.

Rationalization of administrative decisions

Is considered the stage of decision-making based management, and in order to have the decision of the rational, must be based on the selection and trade-offs between a range of options, was chosen because it is the best among these alternatives, the data is provided by cost accounting of the most important data that affect the administrative decisions , in order to avoid taking options may lead to causing material losses of the institution.


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