Cost accounting

Common card · No. 419589

Cost accounting is the process of recording, classifying, analyzing, allocating, and reporting an organization's costs. It is primarily used within management accounting to provide managers with information for planning, controlling operations, evaluating performance, pricing, and other business decisions. Unlike financial accounting, which is primarily concerned with reporting a business's financial position and results to external parties according to accounting standards, cost accounting is principally concerned with information for internal management. Modern cost accounting developed during the Industrial Revolution as the increasing scale and complexity of businesses created a need to measure and allocate costs more systematically. Costs may be classified in several ways according to their relationship to products, business functions, production volume, controllability, timing, and managerial decisions. Basic cost elements include materials and labour, as well as expenses and other...

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