Cost accounting
Cost accounting lets you collect data from various sources, such as the general ledger, sub-ledgers, budgets, and statistical information. You can then analyze, summarize, and evaluate cost data so that management can make the best possible decisions for price updates, budgets, cost control, and so on.
The Cost control workspace is a central point where managers who are responsible for controlling a cost object or a set of cost objects within a dimension or across dimensions (for example, cost centers and product groups) can access reports. The reports in the workspace are fully managed by cost accountants so that the layout and data that are used for reporting can be consistent across the whole organization.
This image shows the Cost control page in Cost accounting > Workspaces > Cost control
Cost management
You can define cost policies in the following areas:
- Predetermined cost
- Inventory accounting
- Manufacturing accounting
- Indirect cost accounting
- Ledger integration
For example, you can define which inventory valuation methods, such as (FIFO (first in, first out), Weighted average , standard cost , or moving average that you want to apply to products in the item model group in inventory accounting.
You can access inventory accounting and manufacturing accounting from the Cost administration and Cost analysis workspaces. These workspaces provide a comprehensive overview of the current status, KPIs, and detection of deviation.
Manufacturing accounting lets you handle job order costing in production orders and batch orders, in addition to backflush costing in lean manufacturing.
The cost management Power BI content provides managerial insight into inventory and work-in-progress (WIP) inventory and how cost flows through them by category over time. The information can also be used as a detailed supplement to the financial statement.
The above content is taken from : https://docs.microsoft.com/
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