Cost accounting is the techniques to determine the costs of products, processes, projects, etc. in order to record the correct amounts on the financial statements. Cost Accounting also helps management in making decisions and in the planning and control of an organization.
For example, Cost accounting help businesses to compute the unit cost of a manufacturer’s products in order to record the cost of inventory on its balance sheet and the cost of goods sold on its profit and loss account. This can be done with techniques such as the allocation of manufacturing overhead costs and through the use of process costing, operations costing, and job-order costing systems.