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Historical Costs
Standard cost accounting is a traditional cost accounting method introduced in the 1920s, as an alternative for the traditional cost accounting method based on historical costs. Adolph Matz (1962) ''Cost accounting.'' p. 584. Overview Standard cost accounting uses ratios called efficiencies that compare the labor and materials actually used to produce a good with those that the same goods would have required under "standard" conditions. As long as actual and standard conditions are similar, few problems arise. Unfortunately, standard cost accounting methods developed about 100 years ago, when labor comprised the most important cost of manufactured goods. Standard methods continue to emphasize labor efficiency even though that resource now constitutes a (very) small part of the cost in most cases ". Standard cost accounting can hurt managers, workers, and firms in several ways. For example, a policy decision to increase inventory can harm a manufacturing manager's performance ev ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cost Accounting
Cost accounting is defined as "a systematic set of procedures for recording and reporting measurements of the cost of manufacturing goods and performing services in the aggregate and in detail. It includes methods for recognizing, classifying, allocating, aggregating and reporting such costs and comparing them with standard costs." (IMA) Often considered a subset of managerial accounting, its end goal is to advise the management on how to optimize business practices and processes based on cost efficiency and capability. Cost accounting provides the detailed cost information that management needs to control current operations and plan for the future. Cost accounting information is also commonly used in financial accounting, but its primary function is for use by managers to facilitate their decision-making. Origins of Cost Accounting All types of businesses, whether manufacturing, trading or producing services, require cost accounting to track their activities. Cost accounting ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Standard Cost
Standard cost accounting is a traditional cost accounting method introduced in the 1920s, as an alternative for the traditional cost accounting method based on historical costs.Adolph Matz (1962) ''Cost accounting.'' p. 584. Overview Standard cost accounting uses ratios called efficiencies that compare the labor and materials actually used to produce a good with those that the same goods would have required under "standard" conditions. As long as actual and standard conditions are similar, few problems arise. Unfortunately, standard cost accounting methods developed about 100 years ago, when labor comprised the most important cost of manufactured goods. Standard methods continue to emphasize labor efficiency even though that resource now constitutes a (very) small part of the cost in most cases ". Standard cost accounting can hurt managers, workers, and firms in several ways. For example, a policy decision to increase inventory can harm a manufacturing manager's performance eva ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
John Francis Deems Rohrbach
John Francis Deems Rohrbach (1889 - Dec. 25, 1968''The Bridgeport Post from Bridgeport,'' Connecticut. Thursday, Dec. 26, 1968. p. 90) was an American business executive, known as co-author of Jerome Lee Nicholson's ''Cost accounting'' first published in 1919. Born in New York City, Rohrbach obtained his degree at the New York City University. After graduation, he started his career as instructor in cost accounting at Columbia University, and got employed by J. Lee Nicholson and Company in the late 1910s, and eventually became partner in this consulting firm. Hein, Leonard W. "J. Lee Nicholson: pioneer cost accountant." ''Accounting Review'' (1959): 106-111. Later on Rohrbach became director of the Milford Rivet and Machine company in Connecticut, New York for some time. After that he joined the rubber company Raybestos-Manhattan Company, Inc. in Passaic, New Jersey. He started out as an accountant, when the firm was worth only $50,000. He got appointed as assistant to the presi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Management Accounting
In management accounting or managerial accounting, managers use accounting information in decision-making and to assist in the management and performance of their control functions. Definition One simple definition of management accounting is the provision of financial and non-financial decision-making information to managers. In other words, management accounting helps the directors inside an organization to make decisions. This can also be known as Cost Accounting. This is the way toward distinguishing, examining, deciphering and imparting data to supervisors to help accomplish business goals. The information gathered includes all fields of accounting that educates the administration regarding business tasks identifying with the financial expenses and decisions made by the organization. Accountants use plans to measure the overall strategy of operations within the organization. According to the Institute of Management Accountants (IMA), "Management accounting is a profession t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Variance Analysis (accounting)
In budgeting (or management accounting in general), a variance is the difference between a budgeted, planned, or standard cost and the actual amount incurred/sold. Variances can be computed for both costs and revenues. The concept of variance is intrinsically connected with planned and actual results and effects of the difference between those two on the performance of the entity or company. Types of variances Variances can be divided according to their effect or nature of the underlying amounts. When effect of variance is concerned, there are two types of variances: * When actual results are better than expected results given variance is described as favorable variance. In common use favorable variance is denoted by the letter F - usually in parentheses (F). * When actual results are worse than expected results given variance is described as adverse variance, or unfavourable variance. In common use adverse variance is denoted by the letter U or the letter A - usually in parent ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Generally Accepted Accounting Principles
Publicly traded companies typically are subject to rigorous standards. Small and midsized businesses often follow more simplified standards, plus any specific disclosures required by their specific lenders and shareholders. Some firms operate on the cash method of accounting which can often be simple and straight forward. Larger firms most often operate on an accrual basis. Accrual basis is one of the fundamental accounting assumptions and if it is followed by the company while preparing the Financial statements then no further disclosure is required. Accounting standards prescribe in considerable detail what accruals must be made, how the financial statements are to be presented, and what additional disclosures are required. Some important elements that accounting standards cover include: identifying the exact entity which is reporting, discussing any "going concern" questions, specifying monetary units, and reporting time frames. Limitations The notable limitations of accounting ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Generally Accepted Accounting Principles (United States)
Generally Accepted Accounting Principles (GAAP or U.S. GAAP, pronounced like "gap") is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC) and is the default accounting standard used by companies based in the United States. The Financial Accounting Standards Board (FASB) publishes and maintains the Accounting Standards Codification (ASC), which is the single source of authoritative nongovernmental U.S. GAAP. The FASB published U.S. GAAP in Extensible Business Reporting Language (XBRL) beginning in 2008. Sources of GAAP The FASB Accounting Standards Codification is the source of authoritative GAAP recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. In addition to the SEC's rules and interpretive releases, the SEC staff issues Staff Accounting Bulletins that represent practices followed by ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Management Accounting
In management accounting or managerial accounting, managers use accounting information in decision-making and to assist in the management and performance of their control functions. Definition One simple definition of management accounting is the provision of financial and non-financial decision-making information to managers. In other words, management accounting helps the directors inside an organization to make decisions. This can also be known as Cost Accounting. This is the way toward distinguishing, examining, deciphering and imparting data to supervisors to help accomplish business goals. The information gathered includes all fields of accounting that educates the administration regarding business tasks identifying with the financial expenses and decisions made by the organization. Accountants use plans to measure the overall strategy of operations within the organization. According to the Institute of Management Accountants (IMA), "Management accounting is a profession t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Time Book
A time book is a mostly outdated accounting record, that registered the work hours, hours worked by employees in a certain organization in a certain period. These records usually contain names of employees, type of work, hours worked, and sometimes wages paid. In the 19th and early 20th century time books were separate held records. In those days time books were held by company clerks or foremen or specialized timekeepers. These time books were used by the bookkeeper to determine the wages to be paid. The data was used in financial accounting to determine the weekly, monthly and annual labour costs, and in cost accounting to determine the cost price. Late 19th century additional time cards came in use to register labour hours. Nowadays the time book can be a part of an integrated payroll system, or cost accounting system. Those systems can contain registers that describe the labour time spend to produce products, but those registers are not regularly called time books, but timeshee ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Alexander Hamilton Church
Alexander Hamilton Church (28 May 1866 – 11 February 1936) was an English efficiency engineer, accountant and writer on accountancy and management, known for his seminal work of management and cost accounting. Biography Church was born in Uxbridge near London to Richard Stephen Hamilton Church and Jane Grace Quick Clemence, both American. His father was the son of Angelica Schuyler and John Barker Church and grandson of Philip Schuyler, a general in the American Revolution and a United States Senator from New York. There were some rumors that his father was an illegitimate son of Alexander Hamilton, who had married another of General Schuyler's daughters. Alexander H. Church grew up in England, where he received a liberal education. Church started his career at the British National Telephone Company. Over the years he became a technical expert in electrical engineering and started working as manager in an electrical manufacturing business. He rejoined the telephone compan ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Richard Vangermeersch
Richard G.J. Vangermeersch (born 1940) is an American economist, and Emeritus Professor of Accounting at the University of Rhode Island, particularly known for his ''History of Accounting: An International Encyclopedia,'' edited with Michael Chatfield. Biography Born in Providence, Rhode Island, Vangermeersch attended the North Providence High School. He obtained his BA in accounting from Bryant University, his MA in accounting in 1964 from University of Rhode Island, and his PhD in accounting in 1970 from the University of Florida with a thesis on the history of economics, economic theory and management.Michaela Mooney For 34 years, accounting professor hasn't done it by the numbers'' February 9, 2004. Republished at ''uri.edu/news/releases,'' 2013. Accessed 11.2014. Finally in 1978 he obtained his Certified Management Accountant (CMA). Vangermeersch spend his academic career at the University of Rhode Island, where he started in 1970 as Associate Professor of Accounting. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
