Cost accounting is described as the evaluating approach to the overall cost of when the business evaluates the cost that is associated with the business. Cost accounting consists of the identification, measurement, collection, analysis, preparation, and communication of financial information. The use of cost accounting is very important in management level positions and anyone whose role is in accounting and the accounting process. Although there are multiple benefits of cost accounting, there is a benefit that helps turn data into knowledge information that is helpful in assisting with the measuring the performances, reducing and managing cost, as well as determining the price for goods and services. There are so many different methods of cost accounting; different industries use different methods for ascertaining cost to their products. Cost accounting involves assigning costs to cost objects that can include a company’s products, services, and any business activities. Cost accounting is helpful because it can identify where a company is spending its money, how much it earns, and where money is being lost.

Jincy Anna Joy

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