Question
Answers (1)
Votes
A: Cost accounting is the source of information required by managers in controlling the usage of business resources, it brings the way where costs of producing goods or services are determined, it is also a mechanism where budgetary control are performed by managers who normally uses management accountants or specifically cost accountants
Charles Mwazembe, a citizen of Tanzania and an accounting graduate from Atlantic International University based in the United States of America, has over 15 years practical experience in accounting, particularly in EDP environment. He has seven years experience in external auditing and is also a part time consultant in accounts computerization; for more details ... 
show bio
This question was originally asked in The Importance of Cost Accounting
Related Articles
Small business often accepts business expenses as inevitable and while some effort is usually made to keep expenses down it is often done without reference to the accounts. Maintaining a regular system of bookkeeping using suitable accounting software can assist the cost accounting for profit exercise by providing the source and extent of the actions to be taken.
Cost accounting and financial accounting have similar functions and they provide information and therefore, both branches of accounting are related to each other to a very large extent:
Accounting is a very old profession. Financial accounting is in use with the dawn of civilization. As soon as counting and arithmetic started, and the use of money replaced the barter system, the financial accounting emerged in some form or other. However, cost accounting is traceable to the earlier part of the seventeenth century.
Cost accounting which is a management accounting's part controls and records all the expenditures which a business unit bears for facilitating control on different activities.
Cost accounting is a division of management accounting where the budgets and costs of operation are decided in such a way that profitability is improved by reducing operating costs. Since it is internal management of the company, it does not require following the GAAP standards. In cost accounts supply chain is translated to financial values.
