For example, a manager may enlist a cost accountant to determine the most expensive aspects of hisher business that is, where the money goes. Mar 24, 2018 accounting cost plural accounting costs economics the total amount of money or goods expended in an endeavour. Accounting, business a detailed report of the financial state or. Business accounting is the systematic recording, analyzing, interpreting and presenting of financial information. An aggregation of actions performed within an organization that is useful for purposes of activitybased costing. Accounting is the way a business keeps track of its operations. There are a number of different types of costs for a business. You can complete the definition of accounting expert given by the english definition dictionary with other english dictionaries. Cost accounting definition and meaning investor dictionary. Glossary of terminology and definitions for business and management. Cost accounting definition of cost accounting by the. Cost accounting can help to improve the utilization of resources such as manpower, plant and machinery, vehicles, buildings, and cash.
Investopedias comprehensive financial terms dictionary with over 00 finance and investment definitions. Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business, and it also refers to the process of summarizing, analyzing and reporting these. Cost accounting examines the cost structure of a business. A cost not classifiable as a business expense and which, therefore, may not be reported in financial accounting. In business, cost is usually a monetary valuation of 1 effort, 2 material. Cost accounting definition and meaning collins english dictionary. Glossary of cost accounting terms established in sffas 4, managerial cost accounting concepts and standards for the federal government activity the actual work task or step performed in producing and delivering products and services.
We use cookies to enhance your experience on our website, including to provide targeted advertising and track usage. Internal managers, rather than auditors, use cost accounting most of the time to identify aspects of their company where costs can be cut. Cost definition for englishlanguage learners from merriam. Valuation of assets and liabilities at their replacement cost which takes effect of inflation into account. Accounting legal definition of accounting legal dictionary. An aggregation of actions performed within an organization that is useful for purposes. Cost accounting definition for englishlanguage learners. Accounting definition, the theory and system of setting up, maintaining, and auditing the books of a firm. Budgeting aids in decision making with regards to minimizing costs and increasing profit. It is money paid out at some time in the past and recorded in journal entries and ledgers. Monetary value of economic resources used in performing an activity. Watching and interpreting reported financial results. Cost control has been defined as the guidance and regulation by executive action of costs of operating on undertaking.
Business function costs are the total sum of all expenses both fixed and variable for a specific step in the value chain. Cost accounting legal definition of cost accounting. An accountant who keeps records of the costs of production and distribution. The definition of cost is the amount paid for something or the expense of doing something. Cost accounting is a form of managerial accounting that aims to capture a companys total cost of production by assessing the variable costs of each step of production as well as fixed costs, such as a lease expense. Also, one of the remedies available for enforcing a right or redressing a wrong asserted in a lawsuit.
Cost accounting financial definition of cost accounting. Since managers are taking decisions only for their own organization, there is no need for the information to be comparable to similar information from other organizations. Accounting which recognizes economic, environmental, health, and social costs of an action or decision. Cost accounting definition is the systematic recording and analysis of the costs of material, labor, and overhead incident to production.
A cost accountant, for example, might be required to establish a system for identifying and segmenting various production costs so as to assist a firms management in making prudent operating decisions. Cost accounting is mostly concerned with developing an understanding of where a company earns and loses money, and providing input. Definition of cost accounting in the financial dictionary by free online. Accounting may be done by one person in a small business, or by different teams in large organizations. Cost accounting is the recording and analysis of all the various costs of running a.
Borrowing, investing, lending, budgeting and projecting future revenue are all part of business finance. It is also used to determine unit costs of items processed in service businesses, such as a banks cost to process a check or deposit. Cost accounting definition in the cambridge english. Managerial accounting definition of managerial accounting. Even if your company generates a good income, poor business finance management can leave you in a tight spot. Cost accounting has long been used to help managers understand the costs of running a business. Cost to serve an accountingbusinessstrategy term and method of analysis which. Management controlpoint where actual costs incurred are accumulated and compared with the budgeted costs. The following dictionary provides definitions for 153 business terms useful for.
The following table shows definitions of the key terms in cost accounting. Accounting, in the context of it, refers to the recordkeeping and tracking of user activities on a computer network. My accounting dictionary is written completely in everyday, non accounting language, so you can understand it. Cost accounting system how is cost accounting system. Traditional cost accounting measures what it costs to do something.
Definition of cost accounting noun in oxford advanced learners dictionary. This data is then summarized and analyzed to arrive at a selling price, or to determine where savings are possible. Managerial accounting synonyms, managerial accounting pronunciation, managerial accounting translation, english dictionary definition of managerial accounting. Cost accountant meaning in the cambridge english dictionary. It includes methods for recognizing, classifying, allocating, aggregating and reporting such costs and comparing them with standard costs. A branch of accounting that observes and calculates the actual costs of a companys operations. Meaning, pronunciation, picture, example sentences, grammar, usage notes, synonyms and more. It is primary job of a costaccountant, besides ascertainment of cost, to furnish different types of statements and information as to enable the management to. Cost accounting is defined as a systematic set of procedures for recording and reporting measurements of the cost of manufacturing goods and performing services in the aggregate and in detail. Compilation of various business words along with their meaning.
Definition of costaccounting noun in oxford advanced learners dictionary. Page 1 of 5 glossary of cost accounting terms established in sffas 4, managerial cost accounting concepts and standards for the federal government activity the actual work task or step performed in producing and delivering products and services. Modern cost accounting originated during the industrial revolution, when the complexities of running a large scale business led to the development of systems for recording and tracking costs to help business owners and managers make decisions. In managerial accounting, manufacturers activities are. I also explain each accounting term in detail and give examples of each, so you can understand the concepts behind. A systematic way of recording and reporting financial transactions for a business or organisation. Definition of cost accounting written for english language learners from the merriamwebster learners dictionary with audio pronunciations, usage examples, and countnoncount noun labels. Accounting definition and meaning collins english dictionary. It does so by collecting information about the costs incurred by a companys activities, assigning selected costs to products and services and other cost objects, and evaluating the efficiency of cost usage. Cost accounting is frequently used to facilitate internal decision making and provides tools with which management can appraise performance and. In accounting, the term cost refers to the monetary value of expenditures for raw materials, equipment, supplies, services, labor, products, etc. Business finance is the art and science of managing your companys money. Cost accounting information is designed for managers.
A system of recording or settling accounts in financial transactions. Jul 23, 20 the cost accounting definition is accounting which seeks to create then compare a budget to the actual cost of doing business. In business, cost is usually a monetary valuation of 1 effort, 2 material, 3 resources, 4 time and utilities consumed, 5 risks incurred, and 6 opportunity forgone in production and delivery of a good or service. Cost accounting definition and meaning define cost. This accounting glossary isnt an ordinary dictionary that you find in the back of one of your accounting textbooks. Cost accounting definition of cost accounting by merriam.
Cost accounting synonyms, cost accounting antonyms. A method of accounting in which all costs incurred in carrying out an activity or accomplishing a purpose are collected, classified, and recorded. Cost accountant financial definition of cost accountant. A branch of accounting dealing with the classification, recording, allocation, summarization and reporting of current and prospective costs and analyzing their behaviors. Cost accounting is an accounting method that aims to capture a companys costs of production by assessing the input costs of each step of production as well as fixed costs, such as depreciation of. The field of accounting that measures, classifies, and records costs.
Instead, the important criterion is that the information must be relevant for decisions that managers operating in a particular environment of business including strategy. Terminology in cost accounting business central microsoft docs. My accounting dictionary is written completely in everyday, nonaccounting language, so you can understand it. In accounting, cash flow is the difference in amount of cash available at the.
Cost definition is the amount or equivalent paid or charged for something. Key takeaways cost accounting is used internally by management in order to make fully informed. The accounting focused on determining the cost per unit of a manufacturer in order to value inventory and cost of goods sold. Definition of costaccounting noun in oxford advanced american dictionary. The decrease in the longterm total cost of manufacturing a product due to the. Accounting is the activity of keeping detailed records of the amounts of money a business. Currentcost accounting definition at, a free online dictionary with pronunciation, synonyms and translation. Cost accounting definition cost accounting techniques example. Wikipedia, lexilogos, oxford, cambridge, chambers harrap, wordreference, collins lexibase dictionaries, merriam webster.
Cost accounting meaning in the cambridge english dictionary. In other words, its the total cost associated with each step a product takes from the manufacturer to the consumer. The classification of unpaid customer accounts receivable according to the date. For a given time period this may include, but is not limited to, realtime accounting of time spent accessing the network, the network services employed or accessed, capacity and trend analysis, network cost allocations. Synonyms for cost accounting at with free online thesaurus, antonyms, and definitions. A method of accounting in which all costs incurred in carrying out an activity or accomplishing a purpose are collected, classified.
Cost accounting is the recording and analysis of all the various costs of running a business. An amount that has to be paid or given up in order to get something. It is an amount that is recorded as an expense in bookkeeping records. Definition of cost written for english language learners from the merriamwebster learners dictionary with audio pronunciations, usage examples, and countnoncount noun labels.
691 607 13 1082 416 85 940 958 1313 316 1165 421 381 1512 1271 1127 1212 601 800 487 454 818 419 1213 22 887 303 587 909 1546 565 561 1004 60 1474 89 473 1137 326 162 252 153 1074 1316 333 1478 1114 1082