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Cost accounting is primarily concerned with capturing information that helps owners and managers operate their businesses more efficiently and profitably. Sometimes cost accounting is called managerial accounting. Here are some lessons on important cost accounting topics:
The Fundamental Accounting Equation
A Simple Balance Sheet and Income Statement
Debits and Credit Transaction Posting Rules
8b. Another Cash Transaction Posting Example
Accounts Payable and Wage Withholding
Prepaid Expenses and Deferred Revenue
Inventory and Cost of Goods Sold
The Lower of Cost or Market Rule
Financial Statement Preparation
16. The Reliability of Financial Statements
Relative Measures of Economic Performance
View Lectures Sunk Costs And Loss Aversion Michael Sack Elmaleh , CPA, CVA Sunk costs are usually defined as previously incurred costs that are not recoverable and should not be taken into account in decision making. Here is a slightly modified example of a sunk cost from Jerold Zimmerman’s “Accounting for Decision Making and Control” […]
Read More...View Lectures Sunk Costs: Assets With Little Or No Market Value Michael Sack Elmaleh , CPA, CVA The text book definition of “sunk costs” reads something like this: costs that were incurred in the past that cannot be recovered and thus are irrelevant for decision making.” Well most costs are incurred in the past so […]
Read More...View Lectures Fixed vs. Variable vs. Average vs. Marginal Costs: Which Should Be Used In Pricing Decisions? Michael Sack Elmaleh , CPA, CVA This article compares the utility of fixed vs. marginal vs. average costs. Here is a simplified case study illustrating the importance of distinguishing between fixed and variable costs and between average and […]
Read More...View Lectures Michael Sack Elmaleh , CPA, CVA Breakeven analysis is a cost accounting technique that helps potential business owners decide whether it is prudent to go into a particular line of business. The idea is to give the prospective business owner some reasonable idea of how much sales activity will be needed to breakeven. […]
Read More...View Lectures Michael Sack Elmaleh , CPA, CVA Video: Financial Statement Projections This article discusses financial statement projections. The income statement tries to indicate how well a business performed in the most recent accounting period. Can this information help predict the firm’s future performance? The answer depends largely on the firm’s economic environment. The Stability […]
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