Cost accounting

Cost accounting records, classifies and analyses the costs of resources, activities, products or services. Its records support inventory measurement, cost control, planning and decisions, although a cost calculated for one purpose may be unsuitable for another. A cost accounting function can maintain cost ledgers, analyse materials and labour, allocate overheads and explain variances. It works with operations and other functions; its organisational title does not determine the information’s quality or turn every accounting cost into a relevant decision cost.