PRE-TASK COURSE RECOGNITION

STUDENT
ALIX BERRIO PERTUZ
CODE: 1.003.240.703

GROUP: 212018_18

TUTOR
JUAN DIEGO CEDENO RAMIREZ

NATIONAL OPEN AND DISTANCE UNIVERSITY - UNAD

COSTS AND CONTABILITY
VALLEDUPAR – CESAR
APRIL 2020

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 Content

P.

1. Introduction …………………………………………………………………………..... 3

2. Description of the purposes of accounting and costs …………………………….. 4

3. Answer to the question………………………………………………………….…... 5

4. Table with the definition of cost accounting concepts …………..... 6-9

5. Conclusions ………………………………………………………………………….. 10

6. Bibliography …………………………………………………..……………………. 11-12

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 1. Introduction

The following work was done in order to present concepts and ideas based on the interpretation

of a reading, in this way, exposing the point of view in relation to the topic of accounting and

costs, the purposes that this tool provides for know detailed information about the production

costs at the time of processing and manufacturing a product, good or service, likewise, expose

the importance that this type of accounting provides to the academic or professional training

process, in addition to this, accounting concepts of costs found in the reading “importance of

accounting and costs”.

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 Pre-task recognition of the course.

2. Describe the purposes of accounting and costs based on the analysis and reading of

the attached text “importance of accounting and costs” available in the learning

environment.

Participation must not extend to more than 20 lines

The purpose of accounting and costs is to expose the information that is available at the

general level of the company in relation to production costs, to determine what it costs to

process a product, good or service, in the various types of production, likewise, Cost

accounting provides information to prepare the balance sheet and income statement, mainly

in industrial companies, that is, it provides detailed information for the execution of said

reports that are necessary in a company, since the cost of the inventories and products sold,

thus determining the viability and profitability of the manufacturing of said services or

products, and this facilitates decision-making for the company's managers. It should be noted

that accounting and costs facilitate the formulation of objectives and tools to determine the

level of performance that is currently evident compared to the projections initially made.

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3. Answer to the question:

Do you consider that Cost Accounting is important and contributes to your academic

and professional training? Justify your answer by pointing out how cost accounting can

contribute to the disciplinary field of studies of the program in which you are enrolled

at UNAD.

I consider that cost accounting is very important in the development of academic and

professional training, since it provides and reinforces previously acquired concepts, this

allows the identification and correct interpretation and management of accounting reports

such as the balance sheet, the income statement. integral, likewise, determine the costs of

manufacturing and production of products.

As an industrial engineering student and future professional, cost accounting provides tools

to control and plan all the activities carried out within the company. Likewise, it will be of

great help when formulating projects or executing decisions within the organization. which is

linked, and the viability can be analyzed and visualized at the time of investing in the

manufacture or sale of products, goods or services, likewise, knowing in detail the risks or

benefits in the investments or projects carried out, in this way, achieve and maintain good

administrative management within the company.

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 4. Table with the definition of cost accounting concepts found in the attached text

“importance of accounting and costs”.

cost accounting concepts

Concept Definition
financial statements They are summaries of the accounting information that reflects the
financial situation of the company, aimed at internal and external users so
that they can evaluate and make decisions regarding the activities and
responsibilities they have with the operational and economic movements
of the company.

Unit costs It is the division of the total cost of the production order by the number of
units produced.

Costs They are the resources classified or lost to achieve a specific objective.

Balance sheet It is the financial statement that summarizes the company's accounting
information to reveal its financial situation on a specific date.

Statement of income It is the financial report that presents the income obtained and the
expenses and costs incurred by the company, to ultimately reflect its
profitability in the activities carried out.

Cost of inventories of The cost of the manufactured products is given by the production costs
manufactured that were necessary to incur for their manufacture.
products
Cost of goods sold or It is the cost incurred to market a good, or to provide a service. It is the
cost of sales value that has been incurred to produce or buy a good that is sold.

Inventories It includes all those articles, materials, supplies, products, renewable and
non-renewable resources, to be used in the process of transformation,
consumption, rental or sale within the activities of the normal course of
business of the economic entity.
Assets It groups the set of accounts that represent the tangible and intangible
assets and rights owned by the economic entity from which present or
future benefits are expected, which, in the presentation of their utility, are
potential sources of benefits.

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 Passives It groups together the set of accounts that represent the obligations
contracted by an economic entity, in the course of the ordinary course of
its activity, payable in money, goods or services.

Heritage They are the obligations contracted with the partners or shareholders of
the company, which have been provided directly or indirectly as a
consequence of the ordinary course of business.

Sales It is the total amount charged for products or services provided.

Sales expense They are disbursements produced by the execution of the sales function

Administration These are expenses incurred in planning, organization, management,

expense control and evaluation activities of the company.
Direct materials Main and fundamental element of production that is subjected to a
transformation process with the purpose of obtaining a finished product.
It is easily identifiable and quantifiable.

direct labor It is the workforce that is physically related to the manufacturing process
of a product.

General In addition to direct materials and direct labor, a series of other things are
manufacturing costs necessary for the manufacture of products, such as public services (water,
electricity and telephones), plant and equipment leases, plant insurance,
etc. All these costs together with indirect materials and indirect labor
make up the group of so-called General Manufacturing Costs, which
constitutes the third integral element of the total cost of the finished
product.

Utility It is the return obtained by the owners of the company, as a result of the
operation of the business, it is determined in the income statement,
through the difference between income and expenses, and is included as
an integral part of the stockholders' equity, since the profits or losses of a
company are property of its owners.

Sale price Sales of a business involve a transaction , that is, a product or service is
given in exchange for something. Normally, it consists of a monetary
value that we call the sales price . This type of price is the one that
determines the cost of a product or service in the market, so in order to
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 consume said goods and services you will have to pay that sales price.

Production costs They are the investments that are destined to the realization of a product,
which is for sale in the ordinary course of the company's business.
Production costs are capitalized in an asset or right.

accounting procedure It is the set of steps that allows the economic operations of an entity or
organization to be expressed through financial statements.

General Accounting It covers all the financial transactions of the company with a view to the
preparation of financial statements which are mainly the balance sheet
and the statement of income and expenses (or profit and loss).

Accounting It is a tool or database necessary for making decisions in a specific

economic entity.

Cost accounting It is any accounting procedure designed to calculate what it costs to do

something, and it is also a specialized part of the general accounting of
an industrial company.

Raw material They are the materials that will be subjected to transformation or
manufacturing operations for their physical and/or chemical change,
before they can be sold as finished products.

direct costs They are representative costs within production that can be easily related
to the product, direct raw materials, direct labor, and direct services.

Indirect costs Indirect costs are not directly associated with products, therefore, it is
difficult to accurately represent how much of the indirect costs should be
charged to each product. They are called differently: factory load,
manufacturing expenses, overhead, general manufacturing expenses,
among others.

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 5. Conclusions

The development of this work allowed us to know general information in relation to accounting

and costs, the importance that this type of accounting provides when knowing the production

costs in relation to the manufacturing of products, especially in industrial companies.

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To conclude, it was of great importance to develop the pre-task, since it allowed the acquisition

and learning of new concepts or tools that will undoubtedly be a fundamental key to successfully

completing this training process.

6. Bibliography

-Hagardon. Cardenas. Introduction to cost accounting: Definition. Retrieved from

http://wbt635.tripod.com/lecturas/o1l1.pdf

- Rincón, C. A., Lasso, M. G., & Parrado, B. TO. AND. (2012). 21st century accounting (2nd.

ed.). Bogotá, CO: Ecoe Ediciones. Retrieved from

http://bibliotecavirtual.unad.edu.co:2077/lib/unadsp/reader.action?docID=10623634&ppg=59

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- Ramos, V. g. AND. (2002). Practical accounting. Mexico, DF, MX: McGraw-Hill

Interamericana. Retrieved from

http://bibliotecavirtual.unad.edu.co:2077/lib/unadsp/reader.action?

docID=10433882&ppg=6#ppg=6

- Charlest, T. (2014). Accounting an approach applied to Mexico. Mexico, DF: Pearson

education. Retrieved from https://books.google.com.co/books?

id=zA8UONX99uAC&pg=PP203&dq=expenses+de+ventas&hl=es-

419&sa=X&ved=0ahUKEwjlq5b55O3oAhVvUd8KHZOkD9kQ6AEIKDAA#v=onepage&q=ex

penses%20de%20ventas&f=fal if

- García, J. (1995). Cost accounting. Mexico, DF, MX: McGraw-Hill Interamericana. Recovered

https://ebookcentral-proquest-com.bibliotecavirtual.unad.edu.co/lib/unadsp/reader.action?

docID=3196408&ppg=1

-Vallejos, H. Chiliquinga, M. (2017). North Technical University. Costs, production order

modality. Recovered from http://repositorio.utn.edu.ec/bitstream/123456789/7077/1/LIBRO

%20Costos.pdf

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