Historical Cost Data Analysis
Introduction
The types of accounting are:.
Public Accounting
It is a specialized branch of Accounting that allows the development of various measurement, information and control processes in the economic activity of the Public Administration. It is based on Public Accounting that the economic events in which public entities intervene are recorded in accounts, in such a way that at all times you can know if the state of the rights and obligations, as well as the degree of collection of the different tax revenues, investments, costs and expenses inherent to the economic process, carried out in the development of the administrative function or state task.
In contrast to the public accountant, who provides services to many clients, in the private industry the accountant is an employee of a single company. The head of the accounting department of a small or medium-sized business is usually called the controller, in recognition of the fact that one of the primary uses of accounting information is to help control business operations. The controller directs the work of the accounting department employees and is part of the senior management team in charge of managing the business, establishing its objectives and ensuring their compliance. Accountants in private companies, whether large or small, must record transactions and prepare periodic financial statements from accounting records.
Cost accounting
Cost accounting is the branch of accounting that deals with the classification, accounting, distribution, collection of information on current and prospective costs.
Included in the field of cost accounting are: the design and operation of cost systems and procedures; determining costs by departments, functions, responsibilities, activities, products, territories, periods and other units; likewise, the expected or estimated future costs and the standard or desired costs, as well as the historical costs; the comparison of costs from different periods; of actual costs with estimated, budgeted or standard costs, and alternative costs.
The cost accountant classifies costs according to patterns of behavior, activities and processes to which products to which they correspond and other categories are related, depending on the type of measurement desired. Having this information, the accountant calculates, reports and analyzes the cost to perform different functions such as operating a process, manufacturing a product and carrying out special projects. It also prepares reports that help the administration to establish plans and select among the courses of action that can be chosen. In general, the costs that are collected in the accounts serve three general purposes: Provide reports related to costs to measure profit and evaluate inventory (income statement and balance sheet). Provide information for administrative control of the company's operations and activities (control reports). Provide information to management to support planning and decision-making (analysis and special studies).