Cost Accounting

It refers to calculating the production cost in the manufacturing industry, and meaning a kind of procedure of adding the cost required for processing to the material cost.
Cost Accounting is performed for the following purposes:

financial accounting:

the documents for financial statements are prepared.

budget control:

the documents for budget drafting and control are prepared.

price estimation:

the documents for determining sales prices are prepared.

management plan:

the documents for profit planning and management planning are prepared.

cost control:

the documents for cost control are prepared.

Thus there are several kinds of Cost Accounting by purpose, and thinking of it from the standpoint of the category of industry/business the company belongs to, or of the standard for calculating costs and its range to be covered, Cost Accounting can be also classified into the following:

the category of industry/business of the company:

process costing and job costing

the standard for calculating costs:

actual cost accounting and standard cost accounting

the range of costs to be covered:

full cost accounting and direct cost accounting

others:

special cost studies

Looking at Cost Accounting by purpose, these various kinds of Cost Accounting are used as follows: