Meaning of Cost Accounting

Cost Accounting is a technique or process or system or method of recording costs relating to production of goods and services. In other words, cost accounting is a process of collection, classification and control over the cost. Collecting, classifying and controlling the costs are the main function of cost accounting. Cost accounting is regarded as a tool of management which is used for internal purpose of business. In other words, cost accounting is the special branches of accounting. It is developed due to limitation of financial accounting. The field of cost accounting has become broader with the passage of time. Besides serving the purpose of inventory valuation and pricing. Cost accounting serves the purpose of cost control, cost estimation and cost determination for a variety of managerial uses. Moreover, the scope of cost accounting has been extended to include the cost and control problems of non manufacturing business as well. Along with the realization of the usefulness of cost accounting, a systematic body of concepts, methods and procedures of cost accounting has been developed.