Cost Accounting

what is Cost Accounting ?

Cost Accounting ⇒ deals with the collection, allocation and control of the costs of producing specifc products and services. Knowledge of the cost of each manufacturing process and each service activity is important in making sound business decisions. If management wants to know whether the production and sale of a product or service is proftable, it must know the cost of that product or service.

Large manufacturing entities have employed several accountants in their cost accounting departments over time, but with the increased use of accounting packages in business, much of the routine work of capturing accounting information is now carried out by computerised information systems.