What is Cost Accounting?

Cost Accounting: The current official terminology of the Chartered Institute of
Management Accountants of England (formerly known as Institute of Cost and
Management Accountants of England) defines cost accounting as, “that part of
management accounting which establishes budgets and standard costs and actual costs
of operations, processes, departments or products and the analysis of variances,
profitability or social use of funds.”
Cost Accounting is the application of costing and cost accounting principles, methods
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 the purpose of
managerial decision-making.
Cost accounting is defined as the process of accounting for cost which begins with the
recording of income and expenditure or the basis on which they are calculated and ends
with the preparation of periodical statements and reports for ascertaining and controlling
costs.