Cost Accounting
FinanceDefinition
A financial process that monitors, examines, and analyzes costs associated with company's products and services.
Detailed Description
Cost accounting is an integral part of ERP systems, aimed at capturing a company's internal costs of production by measuring, recording, and analyzing both variable and fixed costs. It aids in internal financial management, supports strategic planning, and assists in setting budgets. This process is vital for identifying areas where a business can improve its efficiency and profitability by assessing the cost of production, operational activities, and identifying cost-saving measures.
Key Features
- Activity-Based Costing
- Budgeting
- Job Costing
- Standard Costing
- Variance Analysis
Common Modules
General Ledger
Central repository for financial and cost accounting data, facilitating comprehensive financial tracking and reporting.
Inventory Management
Tracks and manages inventory costs, ensuring accurate cost capturing in production and sales.
Popular Implementations
Activity-Based Costing Implementation
Aligns costs with activities by assigning overhead costs based on resource usage, supporting precise cost management.
Implementing Standard Costing
Defines standard costs for products or services to enhance manufacturing efficiency and control.