Learn what cost accounting is, how it differs from costing and cost accountancy, and what are its objectives, functions, applications, importance and requirements. This web page covers the basics of cost accounting , its evolution, nature, origin, procedures and techniques. 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 ... Learn about the benefits of cost accounting , how it differs from financial accounting , and the role it plays in businesses.
