What is Cost Accounting?
Cost Accounting is defined as how costs of products or services are ascertained and controlled. Cost Accounting deals with all those areas that remain unturned by financial accounting, it is a part of management accounting that helps to make informed business decisions, and rather than only translating financial health to stakeholders. It also provides proper information and data to management for planning and better decision-making. Cost Accounting gathers the cost information which helps the management to understand and account the costs involved in operations, processes, and other activities, which helps the management to determine the cost of the product.
As defined by CIMA, “Cost Accounting is the process of accounting for cost from the point at which expenditure is incurred or committed to the establishment of its ultimate relationship with cost center and cost units.
Table of Content
- Objectives of Cost Accounting
- Scope of Cost Accounting
- Users of Cost Accounting
- Limitations of Cost Accounting
- Difference Between Cost Accounting and Financial Accounting