About This Chapter
Cost Accounting Methods - Chapter Summary
Through a few short lessons, you will have the opportunity to learn more about the definition, formulas and methods of cost accounting. You will review components of this aspect of accounting and refer to examples to support the instructional text.
Lessons are accessible 24/7 from any device and you can even print lesson transcripts if desired. Test what you have learned in each lesson with a self-assessment quiz and easily contact instructors via online forms if you have questions about any topic. Once you have finished your study of this chapter, you should be able to:
- Explain cost classifications and components of cost accounting
- Relate the methods used in and the advantages of historical cost accounting
- Use the job-order costing system to track product manufacturing costs
- Discuss the process costing technique
- Calculate variable costs
- Apply the formula and methods used in activity-based costing
1. Purpose & Components of Cost Accounting
This lesson will introduce what cost accounting is and provide a definition. It will introduce cost elements and how costs are classified in cost accounting, then compare and contrast cost accounting to financial accounting.
2. Historical Cost Accounting: Definition, Method & Advantages
In this lesson, you will learn about the concept of historical cost accounting, how it works and what the advantages of using this cost valuation method are.
3. Job-Order Costing System Processes
In a job-order costing system, the product being manufactured is unique, and its costs can be separately identified and tracked. In this lesson, you'll learn how costs are tracked.
4. Process Costing: Definition & Examples
Costing techniques are used to determine how much it costs a company to manufacture a product. Process costing is the method used when comparable products are manufactured. In this lesson, learn what process costing is and how to use this technique.
5. Variable Costing: Method, Formula & Advantages
This lesson discusses variable costing. It explains how variable costs are determined, how they are calculated, and advantages of variable costing. Examples of variable costing are also provided.
6. Activity-Based Costing: Definition, Formula & Examples
Manufacturing companies rely on product cost data to set product sales prices and determine if products are producing profits. This lesson covers activity-based costing and describes how to assign overhead costs to products using this method.
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Other chapters within the Financial Accounting: Help and Review course
- Introduction to Accounting: Help and Review
- Financial Statements in Accounting: Help and Review
- Mechanics of the Accounting Cycle: Help and Review
- Project Evaluation & Analysis
- Preparing Financial Statements: Help and Review
- Internal Controls in Accounting: Help and Review
- Merchandising Operations and Inventory in Accounting: Help and Review
- Current and Long-Term Liabilities in Accounting: Help and Review
- Adjusting Accounts & Preparing Financial Statements: Help and Review
- Taxation of Business Entities
- Accounting Changes & Errors
- Classifying Costs in Accounting
- Cash Flow Statements & Disclosures
- Asset & Inventory Management
- Small Business Financing
- Small Business Accounting
- Financial Reporting
- Banking, Insurance & Monetary Policy
- Types of Financial Risk
- Credit Risk
- Derivatives in Finance Overview
- Capital Markets in Risk Management
- Managing Financial Risk
- Financial Risk & Decision-Making