Cost Accounting Primer

Introduction
The purpose of this manual is to give a general overview of the concepts and principles relating to the accounting function as it applies to manufacturing. By design, several sections are very general in construct while others discuss specific accounting issues in great detail. Before beginning, let's review a few tips that, if followed, will help insure the best use and understanding of this manual.

• This document explains basic and general accounting principles. As such, there is no review of computer system functionality- just universal concepts.
• This manual uses some terms unique to the world of accounting. Take a moment to review these terms in the Glossary (page 5) before your reading begins.
• In our narrative, a “peeling of the onion” approach has been employed. In other words, the second page adds a bit more detail to what was explained on the first page, the third page a bit more than the second, and so on. With this layered approach general examples are used at first, while more detailed examples follow.
• We're ready to begin. Whether you are familiar with the world of accounting or if this is an introduction for you, we hope that this manual will serve as a helpful tool in your understanding of the accounting process as it applies to a manufacturing environment.