COST ACCOUNTING CONCEPTS ACCORDING TO SOME AUTHORS

1.- Norton Backer and Leyle Jacobsen: "Cost Accounting: An administrative and
management approach": "Cost Accounting deals with the classification, accumulation,
control and allocation of costs."

2.- Cecil Guillespie "Introduction to Cost Accounting", "Cost Accounting, applied to

manufacturing activities, is the procedure for keeping production costs with a dual purpose;
determining the cost per unit of the items produced and facilitate various kinds of
comparisons with which production performance is measured.

3.- W. b. Lawrence "Cost Accounting": "Cost Accounting is an orderly process that uses
general accounting principles to record the costs of operating a business so that, with
production and sales data, management can use the accounts to find out the production
costs and distribution costs, both per unit and in total of one or all of the products
manufactured or services provided, and the costs of other various functions of the
negotiation, in order to achieve an economic operation, efficient and productive."

4.- George Hillis Newlove and S. Paul Garner "Cost Accounting": "Cost Accounting is the
special application of accounting principles that, in order to provide data to the directors
and administrators of a business, teach to calculate and help interpret the cost of producing
the articles manufactured or to perform the services provided".

5.- John J. W. Neuner "Cost Accounting": Cost Accounting is an expanded phase of the
general or financial accounting of an industrial or commercial entity, which quickly
provides management with data relating to the costs of producing or selling each item or
supplying a product. private service".

6.- Eric L. Kohler "Dictionary for Accountants": "Cost Accounting, branch of accounting
that deals with the classification, accounting, distribution, collection and reporting of
current and prospective costs."

7.- Theodore Lang "Cost Accountant's Manual": "Cost Accounting, from the point of view
of manufacturing, is the branch or section of accounting created to deal essentially with the
factors of production." He adds that "Cost Accounting meets the following objectives:

http://www.definicionabc.com/economia/costo.php
Cost: Disbursement, expenditure or disbursement that will report a present or future benefit,
therefore it is capitalizable, that is, it is recorded as an asset; When said benefit occurs, the cost
becomes an expense.

Examples of costs : In general, all expenses related to the Production function of a company, such
as: Purchase of materials; Insurance of productive equipment, Surveillance of the Production
Plant, Salaries of employees in the productive area, depreciation of equipment, public services of
the production plant, maintenance expenses, etc.

The term cost refers to the amount or figure that a product or service represents according to
the investment in material, labor, training and time needed to develop it. As you can see, the
term is characteristic and central to economic sciences since it is the point from which any type
of exchange or economic relationship between two parties begins. The cost is what someone
who wants to receive a product or service must pay in order to have it in their possession or at
their disposal.

http://definicion.de/costo/

The cost or cost is the economic expense represented by the manufacturing of a product or
the provision of a service. By determining the cost of production, the public sale price of
the good in question can be established (the public price is the sum of the cost plus the
profit).

The cost of a product is made up of the price of the raw material , the price of the direct
labor used in its production, the price of the indirect labor used for the operation of the
company and the amortization cost of the machinery and buildings.

http://www.loscostos.info/definicion.html

Cost or Cost is the economic expense that represents the manufacturing of a product or the
provision of a service. In other words, the cost is the economic effort (paying salaries, purchasing
materials, manufacturing a product, obtaining funds for financing, managing the company, etc.)
that must be carried out to achieve an operational objective. When the desired objective is not
achieved, a company is said to have losses.

LIC. JOSE A. BRITO BASIC AND INTERMEDIATE ACCOUNTING (ACCOUNTING I AND II) EDITIONS
CENTER OF ACCOUNTANTS SIXTH EDITION

Costs: It is the investment of money that a company makes in order to produce a good, market a
product and/or provide a service. These do not involve operating expenses, represented by
administrative and sales expenses, among other expenses.

LIC. JOSE A. BRITO BASIC AND INTERMEDIATE ACCOUNTING (ACCOUNTING I AND II) EDITIONS
CENTER OF ACCOUNTANTS SIXTH EDITION
Expense: It is a disbursement, expenditure or disbursement that is currently consumed, that is, in
the same period in which it is incurred, or a cost that has yielded its benefit. Expenses are
compared with income (i.e., presented on the Income Statement) to determine the net profit or
loss for a period.

Examples of expenses : All expenses related to the Administration and Sales functions of an
organization, such as: Salaries of administrative and sales personnel, depreciation of the buildings
where the administrative and marketing offices operate, stationery and supplies expenses of the
offices of General Management, Accounting, Budget, Treasury, Internal Audit, General Archive,
etc. The cost of goods sold is a production cost converted into an expense.

http://www.definicionabc.com/general/gastos.php

An expense is the accounting item (of money) that certainly and directly reduces the benefit, or
failing that, increases the loss of the pockets, in the event that that item of money has left the
personal account of an individual or of a company or company .

LIC. A, ROUND PRACTICAL COURSE OF GENERAL AND HIGHER ACCOUNTING

THIRD EXTENDED EDITION YEAR 2014 VOLUME I

Expense is defined as expiration of asset items that have been voluntarily incurred to
produce income. We can also define the expense as the investment necessary to manage the
company or business, since without that it would be impossible for any economic entity to
function; The expense is recovered to the extent that it must be taken into account when
calculating the price of the sale of the good or service.

An expense is an expenditure or outflow of money that a person or company must pay for
an item or service.

http://es.wikipedia.org/wiki/Expense

Another definition of expense from a financial point of view, we can say that it is the investment in
money necessary to manage the business or company, which must be recovered when the sales
price of the product is calculated. When talking about investment, it is obtaining profits. or
benefit; Therefore, the expense is recoverable. The expense is an outflow of money that "is not
recoverable", unlike the cost , which is, because the outflow is with the intention of obtaining a
profit and this makes it an investment that is recoverable: it is an outflow of money. money and
you also get a profit. We can also say that expenditure is the flow of resources or potential
services that are consumed in obtaining the net product of the entity: its income. Losses are
involuntary expirations of asset items that are unrelated to the production of income.

http://www.expansion.com/diccionario-economico/gasto.html

An expense is a voluntary consumption of an asset in exchange for a consideration; in the

event that said consumption was involuntary and without consideration, a loss would be
incurred. They derive from the transactions carried out by the company with the outside
world that give rise to negative alterations in the company's net worth.

The General Accounting Plan (PGC), in its first part, Conceptual Framework, defines
expenses as: “Decreases in the company's net worth during the year, either in the form of
outflows or decreases in the value of assets, or recognition or increase in the value of
liabilities, provided that they do not originate in distributions, monetary or otherwise, to
partners or owners, in their capacity as such .

Bibliography

HARGARDOM, Bernard. Cost accounting

GOMEZ BRAVO, Oscar. Cost accounting

GARCÍA S, Oscar León Financial Administration , fundamentals and application. Third

edition.

http://www.elcontadorpublico.com.ve/diccionariocontable.htm

COST: It is an expense, expenditure or disbursement in money or kind, capital shares or services,

made in exchange for receiving an asset. The tax effect of the term cost (or expense) is to reduce
income to obtain income.

COST: In a broad sense, it is the measure of what must be given or sacrificed to obtain or produce
something.

http://definicion.de/precio-de-venta/
From the Latin pretium , price is the monetary value assigned to something. Said
monetary value is expressed in money and indicates the amount that the buyer or client
must have to obtain a product or service.

The sale , on the other hand, consists of the transfer of ownership of an asset to another
person after payment of the agreed price . When a product is for sale and an individual
wishes to buy it, they have the obligation to provide a certain amount of money to complete
the operation.

The sales price , therefore, is the money that the consumer must pay to buy a product . In
everyday language, we simply talk about price ( "What is the price of those black pants?" ,
"This store is characterized by having the highest prices on the market" , "Excuse me, I
would like to know the price of the new book on Ana María Matute” ).

http://www.gerencie.com/precio.html

Sale price

According to economic theories, analyzing the relationship that exists between the value
(given by society) and the price (which determines the law of supply and demand – or
monopoly) allows us to identify the strategy that companies will apply to set the price.
retail price of your products or services.

According to this, the price can be studied from two different perspectives. The perspective
of the client, who uses it as a value reference, and the perspective of the company, for
whom it is a tool to generate resources aimed at recovering the investment made and
obtaining a profit.

Leaving aside economic theories a bit, the sales price in financial terms must be sufficient
to cover the variable costs and the Contribution Margin.

The sales price is composed of total costs (Variable cost plus Fixed cost) and profit (PV =
CT + UT)

The sales price must then be sufficient to cover costs and to obtain a profit. If the sales
price only covers costs, a break-even point is barely being achieved, which means
stagnation for the company. If the sales price is not enough to cover the costs, a loss occurs,
which if recurring leads to the closure of the company. Any additional value to the
equilibrium point corresponds to the investor's utility, which is what anyone who decides to
risk their capital in a project pursues.

http://www.consumoteca.com/familia-y-consumo/consumo-y-derecho/precio-de-venta-al-
publico/
The retail price (RPP) is the total amount expressed in a currency that the buyer must
pay to the seller, including the taxes levied on the product.

In general, in Spain, the sales prices of goods and services are freely set by each
businessman or professional , in accordance with the provisions of the legislation for the
defense of free and fair competition ( freedom of prices ).

http://help.sap.com/saphelp_470/helpdata/es/12/08512d470311d1894a0000e8323352/
content.htm

The gross sales price is the price paid by the customer, including value added tax. The net sales
price is the price without value added tax.

https://mx.answers.yahoo.com/question/index?qid=20060730175954AAbkvyJ
It is the difference between the sales price and the cost of the good or service sold. It is
generally expressed as a percentage. This percentage can be calculated on the sales price, or
on the cost value.

For example, if I buy a product for $80 and sell it for $100, my profit is $20.
Those $20 are 25% of the cost value (20/80 = 0.25) and 20% of the sale price (20/100 =
0.20)

http://www.santafevalores.com/content/m

Profit Margin : Profitability of a company after paying taxes. Net profit margin is
calculated by dividing net profits by total revenue.

http://jetv.unblog.fr/2012/11/06/glosario-de-finanzasesp/

Net Profit Margin : Profitability ratio that indicates the percentage that net profit
represents of total net income ( financial margin , plus non-financial income, plus other
products) in a given period.