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What is cost accounting?
In accounting subject, the cost accounting deals with the cost which is the monetary value of the total amount of expenditure for services, labour, supply, product, equipment and other purchased for the use of business. The cost accounting helps in the process of collecting, analyzing, summarizing and evaluating various alternatives course of actions. It is derived from the field of accounting and provides the actual cost information. Top management requires this knowledge for controlling the current operation and also helps to plan for the future based on current estimates. Cost accounts differ from the financial accounting as it analyses the fixed and variable cost factor.
Types of cost
Actual cost
Opportunity cost
Sunk cost
Incremental cost
Explicit cost
Implicit cost
Book cost
Accounting cost
Economic cost
Direct cost
Indirect cost
Understanding the subject makes the assignment of cost accounting easy
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