Cost Accounting

Cost Accounting

Most corporate managerial accounting systems do not track costs closely. Easily identifiable costs, such as labor or raw materials, are often finely tracked and allocated to particular product or process lines, but many costs - such as administration costs and environment, health, and safety costs, are considered to be indirect or overhead costs and are allocated broadly across product and process lines. Placing a cost in an overhead account allows it to be shared across activities, but generally removes cost responsibility from any one particular product line or manager. If no one is responsible for a cost, it is ...