Today, in the business world, there isn't a single organization without a cost accountant, and under no circumstances can this function be neglected in any enterprise. The critical role cost accounting plays in making decisions related to product and service pricing allows companies to determine whether to expand production, enter new markets, or launch new products. Its importance in strategic planning for the organization or company and in setting the objectives and policies that management can adopt in the future is also undeniable.
The Industrial Revolution was a significant factor in the emergence of cost accounting, as it transformed manufacturing from manual to automated processes, introducing direct and indirect costs during production stages. This shift caused numerous challenges in calculating fixed and variable costs during production, in addition to costs associated with operating machinery and equipment and other costs allocated to products.
Our cost accounting process involves the following:
Calculating the cost per unit for manufactured products or provided services.
Identifying sources of resource waste and time lost when using equipment or during production processes.
Pricing the product or service.
Determining the profitability of each product or service.
Inventory and labor control by tracking working hours and monitoring goods.
Rationalizing decisions, such as expanding production, entering new markets, or launching new products.