Strange as it may seem, the financial concept in the bottom line is only about. It existed for forty years. The literal role (in fact, an adjective) is the result of the growing need for the II. In the post-World War Post Advanced Economy, the final reference value is determined for profitability. This means that you can learn more about the profit and loss of a company with simple financial accounting. The complexity introduced through the mechanized, large-scale, robust global economy of the 1950s and 1960s and by re-introducing reportable (ie realistic) profits by shareholders during this period led to a new way of assessing profits. This was called cost statement .
This technique of manufacturers differs from financial accounting if it is a much more formal mechanism by which the costs of products or services are determined and verified in terms of efficiency. This can be achieved by collecting all operating costs and then systematically sorting them to assess whether they are appropriate for spending. With this information, management can make decisions that eliminate inefficiencies in production costs and thereby increase the lower line (19459003) profit. Good Costs can not only help you control your costs but also help you in a wide range of manufacturing operations. In this sense, the seven major goals of manufacturing cost calculation are:
- Definition of costs : Of course, the cost calculation is intended to find out what the cost of products and / or workplaces is to make or deliver.
- Control : Increasing efficiency by reducing and reducing costs. Costs should be checked to check the budget by classification and analysis.
- Information : Knowledge of raw material stocks, ongoing work and information on finished products is made through cost accounting that can be used immediately by the management.
- Increasing efficiency : The efficiency of operations is measured by the amount of parts only. As shown by chaos, inefficiencies in one area may cause others. Cost Computation results in an understanding of efficiency (or efficiency) in all areas of manufacturing operations.
- Determines the sales price : Use the detailed cost calculations for various variables (seasonal, economic, dissemination, etc.).
- Operations Management : Where are your direct and direct costs, and why? Costs can modify the Operational Guidelines to increase the profitability of your work.
- : Cost Accounting gives you the opportunity to make frequent cost estimates of production, especially if they are relatively related to production performance. Again, the financial results of routine cost accounting help to continuously improve cost reduction.
A quick overview of the seven objectives shows that, contrary to simple financial accounting, more detailed work on cost accounting provides a wealth of information base for managing operations. The collection, classification and definition of billing costs is therefore a means of identifying and implementing efficiency. If these implementations offer investors greater return on investment and possibly greater dividends, this method can really help lower profits.
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