cost (noun, cost, \ kɔːst \) account (noun, ac-count, \ əˈkaʊnt \)
Definition:
- a) a supervision-point established by the management where the acquired costs are accumulated and analyzed in comparison to the budgeted costs. A detailed examination of the funds included in a cost account allows a company to decide a selling price, allocate cash reserves to where they are needed the most, and locate areas where savings are a realistic possibility, thus improving the decision-making capability of the management.
- b) a type of account dedicated to keeping the costs of services provided by a specific firm.
In a Sentence:
- The accounting department looked through our cost account and concluded that we are missing a huge opportunity to save money on the shipment of our products.
- The manager has appointed a specific employee to watch over the cost account so that he is always aware of how the money is being spent.
- The fact that BycoFire has dedicated a huge of amount of time keeping a cost account allowed them to better estimate the projected budget costs for the next fiscal year.
Synonyms and related words: cost accounting, management control-point, budget costs, financial accounting, fixed cost
