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1. History of business unit: The history of a business unit implies the duration of its existence, position in the industry, the rate of growth, policy and philosophy of management and the like. The history of business unit serves as the basis for designing the cost accounts in respect of necessity, simplicity, and investment involved in installing cost accounts.
2. Nature of the industry: The nature of business such as manufacturing, mining, trading, etc. determines the costing techniques to be applied. Similarly, the type of product manufactured also determines the method of costing that is to be employed. In other words, there is no all-purpose technique and method of costing that can be applied universally.
3. Product range: The range of products manufactured and sold also determines the method of costing to be selected. Accordingly range of products must be analyzed in terms of size, models, fashions, area of market, competitors and whether the products are made to customers' specification or for stocking and selling.
4. Technical considerations: Technical considerations that influence the installation of cost accounts are as follows:
(a) Size and layout of the factory
(b) The existence of production and service departments
(c) Flow of production
(d) Capacity of machines and degree of mechanization
(e) Existence of laboratories
(f) Internal transport and material handling equipments
(g) Production control techniques
(h) Inspection and testing of materials and finished goods.
What else can I help you with?
What role of cost accounting in manufacturing organization?
cost accounting plays very important role in manufacturing organisation.unless cost accounting system one can't get the cost of the product appropriately.Many organisations fix their selling price based on the cost information.Not only in ascertaining cost of the product it can be used as measurement for their performance
Who develop activity based costing?
Activity-based management and activity-based costing (ABM/ABC) have brought about radical change in cost management systems. ABM has grown largely out of the work of the Texas-based Consortium for Advanced Manufacturing-International (CAM-I). No longer is ABM's applicability limited to manufacturing organisations. The principles and philosophies of activity-based thinking apply equally to service companies, government agencies and process industries. The acronym itself has evolved from ABC to ABCM (activity-based cost management) to ABM, and the application of ABC evolved from a manufacturing product costing orientation to a management philosophy of activity management applied in industries and organisations other than manufacturing.
Why do accounting systems of different countries differ?
Accounting systems of different countries differ because accounting is shaped by the environment in which it operates. Each country's accounting system has evolved in response to the local demands for accounting information. Because of globalization of capital markets, the lack of comparability has become a problem as transnational financing and transnational investments have grown rapidly in recent decades. Due to the lack of comparability, a firm may have to explain to investors why its financial position looks very different on financial reports that are based on different accounting practices.
What is on-line accounting system?
cloud based accounting information system
One of the accounting concepts upon which deferrals and accurals are based is?
One of the accounting concepts upon which deferrals and accruals are based i
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.
What type of manufacturing companies are based in Montana?
The top manufacturing companies in Montana manufacture fabricated metals, electrical equipment and machinery. There are also wood and firearms manufacturing companies.
Is Apple Mac business based in China?
No Their HQ is based out of Cupertino California..... Manufacturing does happen at a manufacturing facility in china but so does most of the rest of American based technology companies.
What are the different accounting concepts and principle?
One accounting concept is based around the principles of lean thinking. This is used by companies that employ such methods as lean manufacturing, lean product development, and other lean strategies. Lean Accounting uses cost, management, and financial accounting methods that are based on lean principles. Lean Accounting supports and motivates lean thinking and lean improvement throughout an organization. This is in contrast to more traditional accounting methods that are hostile to lean thinking because they reflect the traditional management principles that are counter to lean thinking.
What role of cost accounting in manufacturing organization?
cost accounting plays very important role in manufacturing organisation.unless cost accounting system one can't get the cost of the product appropriately.Many organisations fix their selling price based on the cost information.Not only in ascertaining cost of the product it can be used as measurement for their performance
Where is the Energy Systems Network based?
Based in Indianapolis, Indiana the Energy Systems Network promotes partnerships between companies in the renewable energy sector with companies who are involved in clean technology.
What type of supply chain management software are the most integrated for manufacturing companies?
There are two main types of software systems: those with web interfaces and web based software application service providers. Web based is increasingly becoming more popular as companies can use shared data easily in "data warehouses" using several web sites or companies.
What are the tools and techniques of lean manufacturing?
Lean manufacturing is the manufacturing systems concept based on Toyata's TPS. Lean is based in the idea that anything which does not add value to the customer is waste. There are several books and seminars on Lean available. Most people need 1-2 weeks of training on lean concepts and practice using it's tools before they feel comfortable that they "Know" Lean. Lean is deceptively simple and many companies say they are Lean companies when in fact they are very far from "Lean".
Who develop activity based costing?
Activity-based management and activity-based costing (ABM/ABC) have brought about radical change in cost management systems. ABM has grown largely out of the work of the Texas-based Consortium for Advanced Manufacturing-International (CAM-I). No longer is ABM's applicability limited to manufacturing organisations. The principles and philosophies of activity-based thinking apply equally to service companies, government agencies and process industries. The acronym itself has evolved from ABC to ABCM (activity-based cost management) to ABM, and the application of ABC evolved from a manufacturing product costing orientation to a management philosophy of activity management applied in industries and organisations other than manufacturing.
Role of cost accountant in manufacturing organization?
cost accounting plays very important role in manufacturing organisation.unless cost accounting system one can't get the cost of the product appropriately.Many organisations fix their selling price based on the cost information.Not only in ascertaining cost of the product it can be used as measurement for their performance
How are CAM systems classified?
Computer-Aided Manufacturing (CAM) systems are classified based on various factors, including their functionality, integration level, and application type. Common classifications include standalone systems, which operate independently; integrated systems, which work in conjunction with Computer-Aided Design (CAD) software; and process-specific systems tailored for particular manufacturing methods such as machining, welding, or additive manufacturing. Additionally, CAM systems can be categorized by their scale, ranging from small-scale systems for individual users to large-scale enterprise solutions for complex manufacturing operations.
What is the difference between an Airbus and a Boeing?
Boeing and Airbus are the biggest Aeroplane manufacturing companies in the world. Boeing is a US based company and Airbus is a European based company.
