Cost accounting

Cost accounting is a type of managerial accounting which figures out the cost structure of a business. These includes assigning costs to products, services, and business-related activities. Managers and employees may use cost accounting to make sure that a business is still efficient and making profits.^[1]

Cost accounting is used inside a business. It helps managers and employees make better decisions to improve operations and profits. Financial accounting, on the other hand, is for shareholders, lenders, regulators, and others outside the business.^[1]