Table of Content

What Is Cost Accounting?

As the term “Cost Accounting” describes that it provides investigation and classification of the expenditure of a company i.e. it provides us the information about the fortune a company is putting in the market or we can say that the money getting used in the market. All of this comes under cost accounting.

Cost accounting is the record of all the cost incurred in the business in a way that it can be used to improve its management. So, overall we can say that with the help of cost accounting we can keep track of all the amount getting used in setting up the business and to market the business so that we can get the most profit out of it.

Which is the goal of any person who is setting up some business. So with the help of cost accounting we can track the flow of the money and the revenue we are getting out of it.

Cost Accounting Implication

The significances of the “Cost Accounting” are as following:

  • Determining of Cost
  • Elimination of the Wastage
  • Data Base for the Operating Policy
  • Value to Workers
  • Price information technology in addition to collectors
  • Helps in reduction of cost
  • Significant to National Economy

Type of Cost Accounting

As, Cost Accounting is very vast subject that is why it has different types which are based on Cost Accounting. Overall Cost Accounting is a branch of Accounting, which further has mini branches and those branches are listed below:

  • Standard Cost Accounting
  • Activity Based Costing (ABC)
  • Lean Accounting
  • Marginal Costing

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