Cost accounting: Guide to what is Cost

Guide to what is Cost Accounting . We explain its advantages, types, functions, difference with financial accounting along with examples. Cost accounting is the reporting and analysis of a company's cost structure. Cost accounting is a process of assigning costs to cost objects. Cost accounting helps manage and control costs by determining the various costs incurred in running a company. With this technique, a company can reduce operational costs and enhance work efficiency, thereby benefiting the company and its client. Cost accounting is defined by the Institute of Management Accountants as "a systematic set of procedures for recording and reporting measurements of the cost of manufacturing goods and performing services in the aggregate and in detail. It includes methods for recognizing, allocating, aggregating and reporting such costs and comparing them with standard costs". [1] Often considered a subset or quantitative tool of managerial accounting , its end goal is to advise the management on how to ...