Cost accounting
focuses on internal costs of a business and it can be quite challenging, requiring specific procedures to decrease errors and any misunderstandings. Manufacturing firms and businesses receiving government funds often use cost accounting along with procedures to guide accountants in the process. Common cost accounting issues are expense controls, allocations, budgets, reports, analysis and planning.
Instructions
1. Get it in writing. If procedures are not in writing and are spread by conversations, take notes about them. Ask your supervisor if you do not understand any costing topic. Each company can be different in how they perform internal accounting processes. Asking questions may be the fastest way to learn the proper procedures to perform certain tasks. Many times procedures are too general and you may need specific information on perform a process. This is not about becoming a pest and inundating your boss with questions. Use common sense.
2. Try to find the reasons behind the procedures, which are often designed to standardize processes and prevent errors and fraud. Ask yourself about the consequences of not following the procedures, such as the types of errors or confusion that could happen. Also, procedures are usually based on policies that are more general in nature, but can help you understand procedures better. For example, a procedure about using a set rate for indirect costs may be explained better by reviewing the related policy.
3. Get more educated about the cost accounting method used. Procedures usually make sense when you understand the theory behind the practice. For example, once you know what direct materials are and how they affect accounting, then you are likely to grasp the concepts in the procedures better. Get as much information as you can about the cost methodology used and then do some research on the topic. If you still don't understand the procedure, at least you can talk about it intelligently.
