cost-accountinglisted

# Cost Accounting Tracks product and service costs so pricing and margin decisions are grounded in real numbers. ## Core Methods * **COGS (Cost of Goods Sold)** = Beginning Inventory + Purchases − Ending Inventory; ending stock is computed via a consistent method (FIFO/average). * **Absorption costing**: all production costs (variable + fixed) enter COGS — per SAK EMKM for financial statements. * **Variable costing**: only variable costs enter COGS; fixed costs are expensed as incurred — an internal analysis tool for short-term pricing decisions. * **Unit cost** = Total production cost ÷ units produced; do not confuse it with the selling price. ## Scope & Safety * **Use for**: setting the minimum selling price, evaluating per-SKU product margins, make-vs-buy decisions. * **Do not use for**: recognizing inventory value in financial statements with a method different from the chosen policy (must be consistent across periods). * Overhead allocation (electricity, warehouse rent) is an estimate — document the allocation basis. * Stock data must be physically accounted for (stock-taking) at least annually. ## Worked Example Input: beginning inventory 50 million; purchases 300 million; ending inventory 40 million; 2,000 units sold. Output: COGS = 50 + 300 − 40 = **310 million**; COGS per unit = 310 million ÷ 2,000 = **155.000**. If the selling price is 200.000 → gross margin per unit 45.000 (22.5%) before operating expenses.