[Verse 1]
When costs come knocking at your door
You need to know what they're here for
Direct costs trace right to the product line
While indirect costs need allocation time
Fixed costs stay steady when volume swings
Variable costs dance with the changing things
Product costs stick to inventory's side
Period costs hit the income statement ride
[Chorus]
Cost accounting tells the story
Direct, indirect, fixed, and variable glory
Job or process, ABC too
Standard costing seeing us through
Allocate and analyze the variances we find
Cost accounting keeps the bottom line in mind
[Verse 2]
Job costing tracks each custom order
Process costing flows like water
ABC says activities drive the cost
Without proper drivers profits can be lost
Service departments need their fair share
Step-down, direct, or reciprocal care
Joint products split the common cost
By-products help make sure nothing's lost
[Chorus]
Cost accounting tells the story
Direct, indirect, fixed, and variable glory
Job or process, ABC too
Standard costing seeing us through
Allocate and analyze the variances we find
Cost accounting keeps the bottom line in mind
[Bridge]
Price variance asks what did we pay
Quantity variance counts what came our way
Efficiency measures how well we performed
Spending variance keeps budgets well-informed
Volume variance shows capacity's use
These five variances give us all the clues
[Verse 3]
Standards set the expectation bar
Actual results show how we are
Favorable variances make us smile
Unfavorable ones need a closer file
Activity-based management takes control
Using ABC data to reach the goal
Cost pools and drivers tell the tale
Of where our costing systems sail
[Chorus]
Cost accounting tells the story
Direct, indirect, fixed, and variable glory
Job or process, ABC too
Standard costing seeing us through
Allocate and analyze the variances we find
Cost accounting keeps the bottom line in mind
[Outro]
From job sheets to process flows
Every CPA accountant knows
Cost classification leads the way
To profitable business every day