COST ACCOUNTING

• Accounting that relates to the management of costs in a business operation and how it’s used to properly manage finances.
• Used in computing the accurate cost of products to be used in determining its selling price.
• Used in budget preparation and monitoring.

COST

• It is the monetary amount of resources utilized to create products or to receive a service needed in the operation of a business.
• Costs are generally incurred to obtain benefits, currently or in the near future.

Examples:

• Rent to use a space for store.
• Payment for the materials you use to manufacture products
• Payment for the labor of your factory workers, etc.