How Does Wet Suit World A Form Of Managerial Accounting

Wet Suit World, is a company that manufactures suits for water sports such as diving and snorkeling. The company provides the same quality of materials and production processes with different types of suits that it produces in terms of size, layers of thickness and different colors. The company needs to determine the cost accurately and think about the method of calculating the cost appropriate for its best use.
Cost accounting is “a form of managerial accounting that aims to capture a company's total cost of production by assessing the variable costs of each step of production as well as fixed costs.”(Tuovila, 2022)
It is a type of accounting that differs from general or financial accounting in that it is more flexible and specific and focuses

Job order costing: “is a system for assigning and accumulating manufacturing costs of an individual unit of output.”(Averkamp, n.d)
Companies bear a variety of costs in their daily operations, specifically in the cost of the work order. These costs differ from each other and need a different treatment by accountants to give a fair picture of the organization, starting from the cost of the work order. The cost of direct materials, direct labor and general manufacturing expenses are assigned to it.
It is appropriate for companies like Wet Suit World that make bespoke products or products in small batches. The method provides the company with accurate information about the cost of production for each job, allowing for effective pricing and cost control.
2. Process costing: “is a type of costing system used for production of small, identical, low-cost items.” (UKEssays, 2018)
This method is suitable for companies that produce large quantities of similar products in a continuous process, by calculating the average cost for each unit that passes through the production process, that is, it eliminates the need to track costs for each product separately, It is a method that suits the Wet Suit World company if it produces large