COMMERCE 2AB3 Chapter Notes - Chapter 3: Hoboken Catalogue, Uptodate, Pro Rata

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 2AB3
• Professor: Khalid Nainar

Document Summary

Explain the characteristics and purpose of cost accounting. Cost accounting: an area of accounting that involves measuring, recording, and product costs. Cost accounting systems: manufacturing cost accounts that are fully integrated into the general ledger of a company. Cost accounting involves: measuring of product costs, recording product costs, reporting product costs. Consists of the various manufacturing costs that are fully integrated into the general ledger system. An important feature is the use of a perpetual inventory system to provide immediate, up-to date information on the cost of a product. There are two basic types of cost accounting. Costs are assigned to each job or batch. A job may be fore a specific order or inventory. A key feature: each job or batch has its own distinguishing characteristics. The objective: to evaluate the cost per job. Measures costs for each job completed not for set time periods.