Cost Accounting is the Application of Costing

Cost Accounting is the application of costing Objectives of Cost accounting is to classifying, recording and appropriate allocation of expenditure for the determination of the costs of products or services, and for the presentation of suitably arranged data for the purposes of control and guidance of management. It includes the ascertainment of the cost of every order, job, contract, process, service or unit as may be appropriate. It deals with the cost of production, selling, and distribution. It is thus the provision of such analysis and classification of expenditure as will enable the total cost of any particular unit of production or service to ascertain with a reasonable degree of accuracy and at the same time to disclose exactly how much cost is constituted so as to control and reduce its cost. Thus cost accounting relates to the collection, classification, ascertainment of cost and its accounting and control relating to the various elements of cost. It establishes budgets and standard costs and the actual cost of operations, processes, department or products and the analysis and the analysis of variances, profitability and social use of funds.

Cost Accounting is the application of costing and cost accounting principles, method, and techniques to the science, art, and practice of cost control and the ascertainment of profitability. It includes the presentation of information derived therefrom for purposes of managerial decision-making. Thus cost accountancy is the science, art, and practice of a cost accountant. It is science because it is a body of systematic knowledge having certain principles which a cost accountant should process for the proper discharge of his responsibilities. It is an art as it requires the ability and skill with which a cost accountant is able to apply the principles of cost accountancy to various managerial problems. Practice includes the continuous efforts of a cost accountant in the field of cost accountancy. Such efforts also include the presentation of information for the purpose of managerial decision making and keeping statistical records. So in the end, the objective of the cost accounting is very wide