Cost Accounting Procedure

In accounting, cost is defined as the cash amount (or the cash equivalent) given up for an asset. Cost contains all costs necessary to acquire an asset in place and ready for use. For example, the cost of an item in inventory also includes the item’s freight-in cost. The cost of land consist upon all costs to get the land ready for its use.

What is Cost Accounting ?

Cost accounting uses information provided by financial accounting together with much more details of operations of cost accounting is collection, processing and evaluation of operating, data. e.g. cost of products, operations, processes, jobs, quantities of materials consumed, labour time used etc. for internal planning and control