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Bookkeeping and Accounting All-in-One For Dummies, UK Edition by Jane E. Kelly

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Chapter 4

Cost Conundrums

In This Chapter

arrow Determining costs: The second most important thing accountants do

arrow Comprehending the different needs for cost information

arrow Contrasting costs to understand them better

arrow Determining product cost for manufacturers

arrow Padding profit by manufacturing too many products

Measuring costs is the second most important thing accountants do, right after measuring profit. But really, can measuring a cost be very complicated? You just take numbers off a purchase invoice and call it a day, right? Not if your business manufactures the products you sell – that’s for sure! Businesses must carefully record all their costs correctly so that profit can be determined each period, and so that managers have the information they need to make decisions and to control profit performance.

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jargonalert One main function of accounting for a manufacturing ...

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