The term "cost" refers to the amount of money that has been spent or is expected to be spent on a specific item or activity in the future or in the past. Students frequently confuse the concepts of costing and cost accounting with cost accountancy, despite the fact that these three terms are related to one another. Costing refers to the process of determining how much it will cost to produce a product or provide a service at each stage of the production process.
Cost accounting involves the recording of income and expenses, the determination of costs, the preparation of periodic statements and reports, and the presentation of the same to the management of the company in order to assist them in the process of decision making.
The term "cost" refers to the amount of money that has been spent or is expected to be spent on a specific item or activity in the future or in the past. Students frequently confuse the concepts of costing and cost accounting with cost accountancy, despite the fact that these three terms are related to one another. Costing refers to the process of determining how much it will cost to produce a product or provide a service at each stage of the production process.
Cost accounting involves the recording of income and expenses, the determination of costs, the preparation of periodic statements and reports, and the presentation of the same to the management of the company in order to assist them in the process of decision making.