Question

what is cost accounting? Explain in detail.

Answer 1

Cost Accounting:- "Cost Accounting" can be defined as the accounting which records, examines, and study the company’s cost of production. Cost accounting covers all the costs related to the process, service, or any other cost related to the production. It helps the firms in controlling the costs and making planning and taking effective decisions for improving cost efficiency. Cost accounting provides data to control the cost and creating a vision and efficient future plans. There are different types of cost accounting such as marginal costing, activity-based costing, standard cost accounting, etc.

Benefits of cost accounting:

• Assessment of cost of the product
• Determination of the price of the product
• Classifying the various costs
• Assessment of wastage during production
• Identifying loss making areas