Types of Cost Accounting – In school learning there must be an accounting major. Accounting talks about finances that will be managed together. The following are the types of cost accounting available
1. Standard Cost Accounting
Standard Cost Accounting is a type of cost accounting that focuses on measuring the efficiency of human resources, production equipment, and raw materials for the products to be used. This type of accounting cost also calculates the average direct cost required by the company in its production process.
2. Cost Volume Profit
The next type of cost accounting is Cost Volume Profit. Ordinary Accounting Cost Volume Profit serves to determine the amount of financing if it is synchronized with the volume of products made.
The assumption used is that the amount of the cost of production will not change, but the volume of product produced can change. So it can be possible there is income there.
3. Activity Based Accounting
The second type of accounting is Activity Based Accounting. This type has a function to measure the cost of production with the cost of production. With this type of cost accounting, it will be easier to understand the costs and benefits of the products they produce.
When viewed from this function, the type of Activity Based Accounting leads to the recording of costs related to production activities.
4. Contribution Margin
This type of cost accounting serves to analyze break even points or analyze at which points the company can benefit from the products produced. Whether from production costs, production activities or in product volume.
By recording the Contribution Margin, it can be seen clearly how much profit the company gets from the product. Because it is still limited to recording, of course at that time, or during evaluation, the company can increase production or vice versa.