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It costs how much? The value of cost accounting.

Article Excerpt
IT IS A RARE service center operator who does not know whether his or her metals business is profitable. But how many know whether their individual bids, jobs or even the types of services they perform are profitable? Few operators, in fact, are aware of whether their "best" customers are generating profits sufficient to warrant the degree of services provided.

To understand profitability means understanding what things actually cost. Do you have any idea of what it costs to bid on a job or project? For that matter, what does it cost to open the doors to your business each day?

Often wrongly thought of as boring, time consuming and less than helpful, both the costing and budgeting process can have a significant impact on your company's bottom line. Costing makes the guesses behind the budgeting process educated ones.

Cost accounting

Cost accounting is best defined as a system for recording and reporting the cost of manufacturing and distributing goods, selling products and performing...

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