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Ch 13: Cost Accounting Methods

About This Chapter

Use the text lessons in this short chapter to review processes and systems used in cost accounting. This resource is a great tool you can use to support your accounting or business class studies or prepare for class, college entrance or student assessment exams.

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

6 Lessons in Chapter 13: Cost Accounting Methods
Test your knowledge with a 30-question chapter practice test
Purpose & Components of Cost Accounting

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.

Historical Cost Accounting: Definition, Method & Advantages

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.

Job-Order Costing System Processes

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.

Process Costing: Definition & Examples

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.

Variable Costing: Method, Formula & Advantages

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.

Activity-Based Costing: Definition, Formula & Examples

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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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