Cost Accounting Definition:
Different authorities have defined the term “cost accounting” which help in reflecting the multi-sided meaning the subject contains. The definition given by J. W. Neuner is considered more satisfactory and concise which is as following:
“Cost accounting is an expanded phase of the general or financial accounting of a business concern which provides management promptly with the cost of producing or selling each article or of rendering a particular service”. In other words, cost accounting is a step further to and a refinement of financial accounting. in which cost of manufacturing and selling each product or job or rendering service is determined, not at the time of accounting period but at the time when the product is manufactured or any service is rendered. In simple words, costing is a systematic procedure for determining the unit cost of output produced or services rendered. It provides for an analysis of the expenditure which enables the management to know not only the total cost but also its constituents.
In short, cost accounting is the process of accounting for cost, which begins with regarding and classifying of incomes and expenditures and ends with the preparation of periodical statements and reports for ascertaining and controlling costs.
As predicted today, cost accounting may be defined as the process of measuring, analyzing, computing, and reporting the cost, profitability and performance of operations.
Other Related Accounting Articles:
- History of Managerial Accounting
- Joint Product Cost Definition
- External Failure Cost Definition
- What is Managerial Accounting
- Financial Accounting
- Direct method Cost of Allocation Definition
- Who is A Certified Management Accountant
- Introduction to Managerial Accounting
- Retainer Fee Approach Definition
- Process Costing System Definition
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