Category Archives: Cost Accounting

Understanding Breakeven Analysis

Breakeven analysis is extremely important for appropriately assessing financial stability. Break even analysis provides management with the answer every owner wants to know: how much do we need to sell in order to stay in business? This invaluable analysis can ...
Read More »

Variable vs. Fixed Costs

In cost accounting, there are two basic ways costs behave: the product costs either increase as product output increases, or they remain static regardless of how much output is created. Many will wonder when this will get interesting, and to ...
Read More »

What is Cost Accounting?

In this post we’ll attempt to answer the question, “what is cost accounting?” Cost accounting is an approach to managerial accounting that creates a clear understanding of the relationship between incurred costs and realized revenues. When implemented correctly and efficiently, ...
Read More »