scope:

Purpose

The determination as to the need for a formal process cost accounting capability in an accounting system is a management decision. The decision to establish such a capability should be based upon a recurring need for cost accounting information. The cost accounting standards that shall be implemented when a decision has been made to establish a formal process cost accounting capability are in Chapter 19. This chapter discusses how to establish process cost accounting functionality, the type of source documents required, typical cost management reports produced, and possible uses of these reports. Component process costing structure must be consistent with the Standard Financial Information Structure (SFIS) and the SFIS Business Rules