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How are cost accounting systems used to determine the cost of a product or service?
Wiki User
∙ 14y ago
The costs of producing a batch of items are added up and divided up by the number of units. For example, if General Motors makes 100 Chevrolets in a production facility one week then an accountant sits down with a list of Accounts Payable, including payroll, utilities, taxes, rent, depreciation, headquarters management fees, and a few other items. He considers all those factors. Then he comes up with what it costs to produce 100 Chevys. He divides by 100 and knows the cost of making one Chevy. He turns his figures over to management. They decide on the markup and use that as the cost to the dealer.
Wiki User
∙ 14y ago
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Why traditional cost systems distort product costs because?
they emphasise financial accounting requirements
What is the differences between manual computerized accounting systems for a service business?
A manual accounting system is a method of processing accounting functions with pencil and paper. A computerized accounting system allows accounting professionals to compute accounting tasks with a computer.
Where can one learn about accounting systems?
You can learn about accounting systems through college courses such as the AAT qualifications. For a simpler overview there are numerous books available that explain the various systems, including Accounting Systems for Beginners.
What is accounting system and what their types?
An accounting system is a program or a system that is used in management and processing of accounts. Some of the types of accounting systems include management accounting, cost accounting, manual systems, double entry and so many others.
What types of accounting systems can be used and Di the accounting principles remain the same?
divide by 1
Where can one find more information on purchasing accounting information systems?
The publication, Wiley, has many articles regarding accounting information systems. The International Journal of Accounting Information Systems is also a great resource regarding where to purchase this product.
Why traditional cost systems distort product costs because?
they emphasise financial accounting requirements
What is the differences between manual computerized accounting systems for a service business?
A manual accounting system is a method of processing accounting functions with pencil and paper. A computerized accounting system allows accounting professionals to compute accounting tasks with a computer.
Where are cost accounting systems used?
Cost accounting systems such as activity-based costing (ABC) systems are used primarily in manufacturing environments, but increasingly are being applied to service companies, such as banks, real estate firms, and insurance companies.
Where can one learn about accounting systems?
You can learn about accounting systems through college courses such as the AAT qualifications. For a simpler overview there are numerous books available that explain the various systems, including Accounting Systems for Beginners.
Types of accounting information systems?
There are so many different types of accounting information systems. Some of the common ones include project accounting, forensic accounting, tax accounting, management accounting and so much more.
What has the author James A Hall written?
James A. Hall has written: 'Accounting information systems' -- subject(s): Accounting, Information storage and retrieval systems, Data processing 'Accounting information systems' -- subject(s): Information storage and retrieval systems, Data processing, Accounting
What is accounting system and what their types?
An accounting system is a program or a system that is used in management and processing of accounts. Some of the types of accounting systems include management accounting, cost accounting, manual systems, double entry and so many others.
What are three questions that all economic systems must answer?
The three questions are what to make, how to make it, and who gets the product/service.
The important of computer in accounting system?
Accountants and accounting systems have been around for many years.
What types of accounting systems can be used and Di the accounting principles remain the same?
divide by 1
What ate the similarities between manual and computerized accounting systems?
They both do accounting and they both involve money
