Technology and artificial intelligence (AI) are rapidly transforming industries across the globe, and accounting is no exception. These innovations are reshaping the way accounting professionals work, improving efficiency, accuracy, and decision-making. As AI continues to evolve, it plays a crucial role in automating routine tasks and providing deeper insights. Understanding these advancements is essential for both current professionals and the next generation of leaders in finance and business.

STANDARD COSTING

Sets predetermined costs for materials, labour, and overhead, then compares them to actual costs to identify variances, helping control budgets and pinpoint inefficiencies.

PROCESS COSTING

Assigns costs to each production stage, ideal for industries like chemicals or food manufacturing where products are mass produced and indistinguishable.

ACTIVITY-BASED COSTING (ABC)

Allocates overhead based on actual activities, offering a more accurate cost analysis and optimising resource usage.

JUST-IN-TIME (JIT) COSTING

Minimises inventory by producing only what’s needed, reducing storage costs and streamlining
production.

TROUGHPUT ACCOUNTING

Focuses on maximising sales generation, identifying production bottlenecks to improve resource flow.

JOB ORDER COSTING

Tracks costs by individual jobs or orders, allowing for precise cost measurement, better pricing, and improved resource allocation.

LEAN ACCOUNTING

Simplifies cost tracking to focus on value-added activities, helping eliminate waste and improve efficiency.

In conclusion, cost accounting techniques play a crucial role in enhancing business efficiency by providing detailed insights into cost structures and resource utilisation. By implementing methods such as standard costing, activity based costing, and just-in-time costing, businesses can identify inefficiencies, reduce waste, and improve decision-making. These techniques not only help companies manage their

budgets more effectively but also support strategic initiatives aimed at optimising production and increasing profitability. In an increasingly competitive market, leveraging cost accounting is essential for businesses seeking to. sustainable growth and long-term success