Cost Accounting Definition:
Different authorities have defined the
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
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.