Cost Accounting Essay Example | Topics and Well Written Essays - 500 words

Cost Accounting - Essay Example The budget is not only the widely used instrument for managements planning but is also the fundamental accounting model of management control. The development of the budget requires the participation of many individual who are made responsible for the control of their planned costs within a company. The ever increasing use of standard cost provides a necessary measure of what cost should be. These standard costs permit an early preparations and presentation of short run cost reports to operating management and summary statements to executive and middle management, highlighting the deviations from planned goals. Standard cost should ideally be the integral part of budget in its preparation as well as its use as a control device. Cost accounting can assist management's levels in planning and control duties by providing information via analytical tools that express more vividly and forcefully multidimensional aspects of managerial problems. Break even analysis offers another method that permits managements to judge the over all plan on a pragmatic and convenient bases. The budget is one method of securing reliable and prompt information regarding the operation and control of an enterprise. When manufacturing are based on standard for material labor and overhead, a strong team of possible control and reduction of costs is created.