What is cost accounting?
Understand the Problem
The question is asking for the definition and explanation of cost accounting, including its purpose and principles.
Answer
Cost accounting is a managerial process that records, analyzes, and reports company costs to aid in efficiency and profitability.
Cost accounting is a managerial accounting practice involved in recording, analyzing, and reporting a company's costs, both direct and indirect, to assess how they impact operations, efficiency, and profitability.
Answer for screen readers
Cost accounting is a managerial accounting practice involved in recording, analyzing, and reporting a company's costs, both direct and indirect, to assess how they impact operations, efficiency, and profitability.
More Information
Cost accounting focuses on the internal financial tracking of company expenses to improve financial health and decision-making. It is a critical aspect of managerial accounting, helping businesses determine profitability and cost efficiency.
Tips
Confusing cost accounting with financial accounting is common; however, financial accounting focuses more on external reporting.
Sources
- What Is Cost Accounting? Definition, Concept, and Types - investopedia.com
- Cost Accounting: Definition and Types With Examples - Investopedia - investopedia.com
- Cost Accounting: Defined: What It Is & Why It Matters - NetSuite - netsuite.com
