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Cost accounting definition

Accounting Tools

Related Courses Cost Accounting Fundamentals Financial Analysis What is Cost Accounting? Cost accounting examines the cost structure of a business. None of these tools are used by financial accountants, who are more concerned with the production of financial statements.

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Cost concepts in decision making

Accounting Tools

Related AccountingTools Courses Cost Accounting Fundamentals Effective Decision-Making Financial Analysis Allocated Costs Overhead costs are allocated to manufactured goods only because it is required by the accounting standards (for the production of financial statements ).

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Accounting department definition

Accounting Tools

It is responsible for billings, payroll , cost accounting , the production of financial statements , paying suppliers , and similar activities. The department is usually managed by a controller , who in turn reports to the chief financial officer.

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Relevant cost definition

Accounting Tools

This concept is only applicable to management accounting activities; it is is not used in financial accounting , since no spending decisions are involved in the preparation of financial statements.

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Cost volume formula definition

Accounting Tools

Related Courses Cost Accounting Fundamentals Financial Analysis The Interpretation of Financial Statements What is the Cost Volume Formula? The cost volume formula is used to derive the total cost that will be incurred at certain production volumes.

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Direct costing definition

Accounting Tools

For the purposes of this specific production-increase decision, then, the associated direct costs are: Related AccountingTools Courses Cost Accounting Fundamentals Financial Analysis When to Use Direct Costing Direct costing is of great use as an analysis tool. Profit-volume relationship.

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Weighted average contribution margin definition

Accounting Tools

Related Courses Cost Accounting Guidebook Financial Analysis The Interpretation of Financial Statements What is the Weighted Average Contribution Margin? The concept is a key element of breakeven analysis , which is used to project profit levels for various amounts of sales.