Cost Accounting In The Development Of Activities Produced And Business Profitability

Cost accounting in the development of activities produced and business profitability

Summary

The objective of this article is to determine the fundamental and essential role that cost accounting in the different institutions plays. Companies must have an accounting system that helps them to know all the information collected the benefits obtained and the losses generated during the period and allow companies to carry out precise strategies and achieve good results, managing to optimize unnecessary resources and achieve effective profitability. In this way, all entities know the business profitability of the performance produced, it is importantProduct in article ends, and increasing sales to give value to each of the products made through a price and the amounts that have been generated and knowing performance reached.

Introduction

Cost accounting is treated by different atores which one has called that it is born for industrial companies and can know the inverted raw material for the production of a product. The costs expressing material and labor resources to achieve a certain percentage of articles with a certain quality, is fundamental that have an area of productions a fundamental basis since it allows to know, determine what is produced, it is also important to know with the Department of Administrationsince it has strategies and to maximize the opportunities achieved.

Companies every day are growing in a more effective way there is a change in the most appropriate accounting systems allowing to identify and describe each of the tools and be able to bring adequate information from the states, financial, of the amounts produced and the gain obtained inAll organizations.

Effective control of the transactions carried out the articles sold must be carried out most frequently in all organizations leading to position in the market and achieve greater competition taking into account the quality of the product to achieve sustainable benefits of the goods produced.

Once each financial statement has been analyzed, you reach a true analysis and decision -making in this way business profitability and obtain positive results and adequate solvency in the company is the benefit that will be obtained

For this reason, this reason is proposed to present a hypothesis regarding cost accounting its adequate management, the prima used, labor, business profitability, the benefit that has been achieved, the benefit obtained the increase in the increase insales, maximization of costs and optimization of unnecessary resources.

Developing

Before recognizing how cost accounting influences companies, it is important to know how it arose. "The cost accounting arose and was deployed to meet the new needs raised by the industrial industrial companies of the Industrial Revolution" (Chacon, 2007, p. 3. 4). At the beginning all industrial companies were making their registration through observation and all the information generated was empirically made without knowing the income and expenses that existed the great competition that arose in the market, due to these, a greater complexity grew in companies.Its profitability, not knowing the value that each of its articles cost, for example the employer buys the raw material, subsequently passed it to the workshop where the workers who was the hand of acting using their physical work carried out the product, they sold thefinished article and is paid according to the amount of items produced.

This is how cost accounting emerged from a more generic point of view is of great importance in organizations since it allows measuring, evaluating and analyzing the profitability of the different departments, it allows companies to collect true information for the elaboration of statesfinancial and get to more accurate decision making. Making known about the amount used to produce a good and avoid losses of materials, with the information obtained, it will be achieved to have an adequate amount of material for the production of said product managing to control an acceptable profit margin.

From a broader criterion, cost accounting is an essential method since it allows to obtain information on the articles produced, the amount sold and carry adequate and correct control through the data provided to be carried out an analysis of what is happening or canbeing affecting the company internally or externally of being a brief decision, all the information obtained is fundamental and valuable since through all the documents to be able to know the profits generated, the income and expenditures made by the organization since it is a fact that it is a factvery decisive for a correct study and obtain the expected objective achieving a success in the company and a very efficient profitability.

Cost accounting is responsible for calculating how much the production of a product costs, with the information obtained, the monetary value of the raw material of the semi -finished and finished products can be known as well as knowing how the human resource is efficient.great performance carried out in their work activities, that is, direct and indirect labor. Therefore, the manager offers a broader and more specific vision of what is invested in production in the product, thus allows the company’s profitability margins to be aware of and prevent future losses managing to maximize the benefits by creating value and increasingsales through the price and quantity given to each product allocated.

Cost accounting and business profitability

The main objective of cost accounting and its business profitability allows us to accumulate to have a data tabulation to determine a unit cost of elaborated product helps to provide true and accurate information to develop a good planning of the processes produced. All the information obtained helps to prepare generated budgets and economic studies of the company for decision -making and that these do not affect it achieving a more acceptable profit margin.

The cost accounting must be developed by 3 basic tools to be able to satisfy all the purposes and objectives set. The first phase is the measurement of costs that allows the accumulation of the necessary information base to determine a final cost of the product developed the materials that materials that materials that materials that materials that materials that materials that materials that materials that materials that materials that materials that materials that materials that materials that materials that materials that materialIt is essential for manufacturing, labor with the purpose of doing what is said and other essential supplies that are used, as a second phase is the corresponding registration of costs in the major books and the realization of financial statements managing to know their profitability theArticles sold the income and discharge that exists, finally we have the presentation of detailed reports to achieve strategies and good effective decision making.

Business profitability is of great knowledge in each of the companies through this can be measured and knowing the performance of organizations the results generated, the benefits obtained the monetary value, the amount of products sold the profit margin that is usedHe has managed to obtain throughout the period of the year reaching the goal raised by entrepreneurs.

It allows to determine the effectiveness that has been achieved by controlling the costs and expenses to be ableThe corresponding transactions, the sales generated, the prediction and expenses given will be possible to know in a more detailed way the accounting records and the marginal cost given, controlling the products sold and informs how it has been growing positively or negatively, if it has been achievedhave effective profitability, if it has been possible to reduce the unnecessary expenses that are produced due to the misuse of raw material when preparing a finished product.

"The indicators of profitability, lucrativity or performance are intended to measure the effectiveness with which the administration controls the costs and operational expenses to convert sales into profits". (Ortiz, 2004, p. 3. 4)

Achieving sufficient profitability has the ability to generate utility, that is, when the company is lucrative, it allows to obtain greater income capacity than expenditures but as long as all the documents provided on the entity have been analyzed, any goal that has been raised within acompany must be successful and favorable for the expected results regarding the cost of the products that are given or required.

In order to achieve profitability, the competitiveness that exists must be taken into account, for the company that is when they generate a brainstorm. How much should it occur? What products do you prepare? All the questioned interrogations will be made proposals satisfy the company for the development of finished products through the quality of the subject used for the transformation of the article and can satisfy the client so that there is greater profitability, there must be less unnecessary expenses produced and finding aAirious utility.

Finally, cost accounting and profitability is of great relevance and primary since it helps to have a balance in operations, allows you to achieve efficient profits and good company development

Conclusions

Cost accounting in the development of activities produced and business profitability is important since it obtains necessary information to facilitate the control of documents provided in this way helps management to push organizations even continuous improvement to have an adequate benefit forThe organization can create strategies, cost accounting facilitates management control and this process helps the organization towards its aforementioned objectives, to achieve greater profitability, evaluate, evaluate all the activities carried out within the company for efficiency andThey are fundamental since they are one of the most essential tools within the company to produce an article of the best quality achieving a benefit point of the articles and increasing their sale to obtain positive results within the company.

Bibliography

• Chacon. (2007). Obtained from https: // www.Redalyc.org/pdf/257/25701504.PDF
• Ortiz. (2004). Obtained from https: // www.Redalyc.org/pdf/257/25701504.PDF