ECONOMICS

Detailed explanation-1: -Cost accounting is a large subset of managerial accounting that specifically focuses on capturing a company’s total costs of production by assessing the variable costs of each step of production, as well as fixed costs. It allows businesses to identify and reduce unnecessary spending and maximize profits.

Detailed explanation-2: -Cost accounting is a business practice in which you record, examine, summarize, and understand the money that a business spent on a process, product, or service. It can help an organization control costs and engage in strategic planning to improve cost efficiency.

Detailed explanation-3: -Cost accounting can be used to identify inefficiencies and apply the necessary improvements needed to control costs. These controls can include budgetary controls, standard costing, and inventory management.

Detailed explanation-4: -Cost accounting provides data for periodical income statements and balance sheets, and actual figures to compare with estimates for different periods. Analysing this information helps business managers with effective decision-making.

Detailed explanation-5: -Cost management is the process of planning and controlling the costs associated with running a business. It includes collecting, analyzing and reporting cost information to more effectively budget, forecast and monitor costs.