what is cost accounting?

Answer 1

Cost accounting is the process of tracking, recording and analyzing costs associated with the products or activities of an organization. Cost accounting does not follow GAAP. Costs are measured in units of currency by convention. Cost accounting could also be defined as a kind of management accounting that translates the Supply Chain (the series of events in the production process that, in concert, result in a product) into financial values. Managers use cost accounting to support decision making to reduce a company's costs and improve its profitability.

There are at least four approaches:

Standard Cost Accounting
Activity-based Costing
Throughput Accounting
Marginal Costing

Cost Elements:

1) Raw Material
2) Manual Labor
3) Indirect Expenses

Answer 2

Let's say you run a factory that makes lawn mowers and snow blowers. The boss wants to know if both products are profitable, and how profitable. The accountants have to take all the costs of the factory and figure out per unit how much it cost to make one of the machines. Its useful info when you can get it.

Answer 3

The recording of all the costs incurred in a business in a way that can be used to improve its manageme