cost accounting



A method of accounting in which all costs incurred in carrying out an activity or accomplishing a purpose are collected, classified, and recorded. This data is then summarized and analyzed to arrive at a selling price, or to determine where savings are possible.

In contrast to financial accounting (which considers money as the measure of economic performance) cost accounting considers money as the economic factor of production.

Use cost accounting in a sentence

  • The cost accounting skills of the certified public accountant were demonstrated when he analyzed our inventory despite our lack of records.

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  • It may be easier to use a cost accounting strategy for certain projects to figure out what your bottom line really is.

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  • Depending on the type of business you run it may be easier to keep a cost accounting form of records instead of the traditional form.

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