ECONOMICS

Detailed explanation-1: -Answer and Explanation: Cost accounting refers to the method which is used to compute the cost of production of a company. It includes planning, controlling and product costing. However, it does not include profit sharing that is related to distribution of profits to its financial stakeholders into different forms.

Detailed explanation-2: -Cost accounting concepts include all the following except profit sharing. Cost accounting is an accounting method that aims to capture a company’s costs of production by assessing the input costs of each step of production as well as fixed costs, such as depreciation of capital equipment.

Detailed explanation-3: -Cost accounting considers all input costs associated with production, including both variable and fixed costs. Types of cost accounting include standard costing, activity-based costing, lean accounting, and marginal costing.

Detailed explanation-4: -Non-cash items: Non-cash items are not included in cost accounts because the cost accounting only deals in cash receipts and expenses, these items are capital depreciation, amortization of goodwill, investment gain and loss without cash payments.

Detailed explanation-5: -It excludes indirect costs such as overhead and sales & marketing.