costing

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costing

The manager reviews the product costing report.

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 costsdirect materials, direct labor, and both variable and fixed overhead—in the cost of a product.
    • The financial report was prepared using absorption costing principles.
costing

The manager reviews the product costing report.

Noun
  1. cost accounting