The Accounting Review Vol. 26 No. 2 1951
COST ACCOUNTING VERSUS COST BOOKKEEPING.
Abstract
The article focuses on the need to draw a distinction between cost accounting and book keeping. Bookkeeping is usually considered to be a purely clerical function, directed by the accountant and proceeding along lines laid down by the requirements of accounting. The most distinctive of the accounting activities relate to the presentation and interpretation of the results of bookkeeping for the benefit of management, owners, creditors, and the general public. Cost accounting, includes four major functions, which includes devising cost accounting systems and procedures, recording cost data, or cost bookkeeping, preparing forecasts of costs which serve as the basis of planning and budgeting, and presentation and interpretation of cost data, including the making of comparisons between cost data derived from one source and those derived from another such as comparisons between actual and expected costs. For the teacher, the distinction between cost bookkeeping and cost accounting is important principally as a basis for putting into their proper perspective the several matters which are dealt with in the cost accounting course or textbook.
- DOI
- 10.2308/tar-7070426
- Volume
- 26
- Issue
- 2
- Pages
- 141-151
- Language
- en
- Sources
- openalex crossref