Cost Accounting is a branch of accounting information system, which records, measures and reports information about costs. The primary purpose is cost ascertainment and its use in decision making and performance evaluation.
Cost accounting is concerned with recording, classifying and appropriate allocation of expenditure for the determination of the costs of products and services, and for the suitably arranged data for purposes of control and guidance of information to management for decision making.
Objectives of Cost Accounting:
- Estimation of costs
- Ascertainment of cost
- Cost control
- Cost reduction
- Determining selling price
- Facilittin preparation of financial and other statements
- Providing basis for operating policy