Production Cost Accounting
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This paper presents a scenario to illustrate the total production cost of a given situation. The paper then addresses how this technique of production cost accounting could be used in the decision-making of leisure centers or hotels. The paper highlights how cost accounting in this regard is important as it is intended to provide instant cost information so that management can take timely actions to correct any kind of over costing or expenses incurred within the department.
From the Paper:"In the above the technique used for calculating the total production cost is done with the aim for rapid decision makers who only wants an estimate total production cost of a department. This is crucial especially in cost accounting of a large firm, which has numerable entities to answer to. For example it is used in the determination of costs and profit in a given controlled period of accounting. In this regard it becomes imperative for the decision-maker like a chief accountant or a chief operations manager to decide whether it will cut down its materials or increase its production hours to meet deadlines.
"Once this is determined he would be able to answer to superiors how it would affect the profit that would reap at the end of the year that in turn would affect valuation of the stock in hand, work in process and the final finished goods. It is also useful in controlling the inventory on hand, as it is important for the computation of budget and its forecasts. Management level individuals find it useful to have an on hand analysis of on hand method of calculation so that they can monitor how affective their decision had proved in production areas from time to time."
Cite this Term Paper:
Production Cost Accounting (2003, October 07) Retrieved June 30, 2022, from https://www.academon.com/term-paper/production-cost-accounting-36317/
"Production Cost Accounting" 07 October 2003. Web. 30 June. 2022. <https://www.academon.com/term-paper/production-cost-accounting-36317/>