Definition

Noun 1. Cost accounting: The process or system of recording, analyzing, and allocating all costs associated with producing a product or providing a service. It is a specialized branch of accounting focused on determining the total expenses of business operations.

Usage Examples

• Noun:
  • Accurate costing is essential for setting the right price for our new product.
  • The management team requested a detailed costing of the proposed marketing campaign.
  • She specializes in product costing for the manufacturing division.

Advanced Usage

• Activity-based costing (ABC): A specific, more precise method of costing that assigns overhead and indirect costs to related products and services based on the activities that generate costs.
  • The company switched to activity-based costing to get a clearer picture of profitability per client.
• Job costing: A costing method used for unique or custom products and services, where costs are assigned to a specific "job."
  • The construction firm uses job costing for every building project.

Variants and Related Words

• Cost (verb/noun): The amount that must be paid or spent to buy or obtain something. (e.g., )
• Costly (adjective): Expensive; involving great cost. (e.g., )
• Cost accountant (noun): A professional who specializes in cost accounting.

Synonyms

• Cost accounting
• Expense analysis
• Cost estimation

Related Phrases

• Costing out: The process of calculating the total cost of a specific project or plan.
  • We are currently costing out the options for the office renovation.
• Absorption costing: A costing method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed overhead—in the cost of a product.
  • The financial report was prepared using absorption costing principles.

Noun

1. cost accounting