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Principles and methods of managerial cost-accounting systemsJ D Suver et al. Am J Hosp Pharm. 1988 Jan. AbstractAn introduction to cost-accounting systems for pharmacy managers is provided; terms are defined and examples of specific applications are given. Cost-accounting systems determine, record, and report the resources consumed in providing services. An effective cost-accounting system must provide the information needed for both internal and external reports. In accounting terms, cost is the value given up to secure an asset. In determining how volumes of activity affect costs, fixed costs and variable costs are calculated; applications include pricing strategies, cost determinations, and break-even analysis. Also discussed are the concepts of direct and indirect costs, opportunity costs, and incremental and sunk costs. For most pharmacy department services, process costing, an accounting of intermediate outputs and homogeneous units, is used; in determining the full cost of providing a product or service (e.g., patient stay), job-order costing is used. Development of work-performance standards is necessary for monitoring productivity and determining product costs. In allocating pharmacy department costs, a ratio of costs to charges can be used; this method is convenient, but microcosting (specific identification of the costs of products) is more accurate. Pharmacy managers can use cost-accounting systems to evaluate the pharmacy's strategies, policies, and services and to improve budgets and reports. Similar articles
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MeSH termsWhat does cost accounting measure record and report?What is Cost Accounting? Cost accounting refers to a systematic procedure that businesses use to record and report their cost of production. To be able to measure the cost of production, they usually assess each steps output costs involved in the production and fixed costs like capital equipment depreciation.
What does cost accounting measure?Cost accounting is a method of managerial accounting which aims to capture the total production cost of a business by measuring the variable costs of each production phase as well as fixed costs, such as a lease expense.
What are the 4 types of cost accounting?There are different types of cost accounting such as marginal costing, activity-based costing, standard cost accounting, lean accounting.
Which cost accounting is a reporting system?This is Expert Verified Answer
Cost accounting is a a) internal reporting system. Cost accounting is a accounting system that holds account of company's internal costs. The accounting is controlled by management team.
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