Btec Level 3and Level 5in Engineering Essay

5778 Words Aug 21st, 2013 24 Pages
Prepared by :Romana Ahmed
STUDENT NAME: Md.Tanvir Ahamed
ID No:607
College: United college of aviation Science And Management
Unit 1: Business Management Techniques. Assessor: Romana Ahmed Assessment: one Title: Costing systems and techniques

Learning Outcomes/Contents.2. Select and apply costing systems and techniques | Grading CriteriaP1:Identify and describe appropriate costing systems and techniques for Specific engineering business functions.
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Without such a system in place it is impossible to control costs and determine the overall profitability of the business operation. Cost accounting is necessary for a company to be able to exercise control over the actual costs incurred compared with planned expenditure. From the point of view of cost control, a costing system should not only be able to identify any costs that are running out of control but should also provide a tool that can assist in determining the action that is required to put things right.
A costing system is the one that includes the sum of all variable and fixed costs in all business or engineering functions of the value chain (R&D, design, production, marketing, distribution and customerservice).Accountingsystem establishedto monitor a companies'costs,providing management with information on operation sand performance’s costing system is not intended to replace an accounting system. Instead, the systems actually work within the broad framework of general accounting systems to extract specific data for quick and easy analysis. By making use of a costing system, it is possible to quickly identify expenditures that were intended to benefit the company, but are failing to do so in a significant way. This makes it possible for owners and managers to make the necessary adjustments to the company’s working strategy and thus exercise a more responsible use of available resources.
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