Cost Accounting Analysis of Microsoft Corporation
Cindy Costa
Axia College
ACC 227- Cost Accounting
Mr. Roger Johns
September 28, 2008
Cost Accounting Analysis of Microsoft Corporation
What is cost accounting? What impacts does cost accounting have in an organization?
Cost accounting is the monitoring activity of the financial management process. This activity involves the identification of assets and activities (cost elements) to which costs can be assigned. It also involves the development of cost allocation schemes whereby the costs related to each cost element are distributed fairly and equitably to customers. Cost accounting is responsible for developing financial reports for management. (Microsoft Tech Net, 2008)
It is amazing how the computer industry has blossomed. What does one think has made this possible? The programming and software has made it possible for many to obtain and use these computers with effortlessness ability. One is probably familiar with how rapidly the software industry is growing and how quickly products become more useful to use are and more in demand. When a company creates many products and provide services they must increases the workforce to keep their products and services more competitive and available. The organization has now become more recognized as an industry leader and their earnings grow relative to their recognition. Microsoft has recognized this potential and has used it toward making the organization such a conglomerate industry that it is today.
Microsoft’s founder and chairperson William (Bill) Gates, a Harvard University dropout and co-founder Paul Allen began Microsoft in the year 1975. Gates’ insight and visualization of personal computers are the innermost and vital reasoning to the success of the Microsoft industry. Microsoft has came from a small corporation of programming software for computers to a multinational organization that now include Microsoft...