Title: Introduction to Cost Accounting 1 Cost Accounting Foundations and Evolutions Kinney, Prather, Raiborn . Cost accounting is the process of determining and accumulating the cost of product or activity. 4- Difference between cost, expense & loss. It is the application of Costing and Cost Accounting Principles, Methods and Techniques to the science, art and practice of Cost Control and the ascertainment of profitability. Cost Accounting as a source of information for internalparties within the organization. But, in Cost accounting, it is considered to be different from price. In cost accounting, the amount of resources that is given up in exchange for some goods or services is known as cost. INTRODUCTION. 2/18 Ana Mª Arias Alvarez(Universityof Oviedo) Introduction to CostAccounting OpenCourseWare 1.1. That is the general meaning of cost. Cost means price; the price that is paid for something. 1 Costing Principles 2. Classificationsof costs. It includes the presentation of information derived there from for the purpose of Managerial Decision Making. Meaning: Cost accounting is the classifying, recording and appropriate allocation of expenditure for the determination of the costs of products or services, and for the presentation of suitably arranged data for purposes of control and guidance of management. 1.3. Introduction to cost accounting 1. PARAMJIT SHARMA COST ACCOUNTING- introduction Fundamentals Cost computation: It is the source of all other functions of cost accounting as we can calculate the cost of sales per unit for a particular product. Costs and cost terminology. Cost reduction: Cost computation helps the company reduce costs on projects and processes. It also covers classification, analysis, and interpretation of cost. 2- The need for cost accounting. 1- Cost accounting and the role of cost accountant in assisting managers in planning, controlling & decision making. Here we detail about the meaning, objectives, principles, objections against and evolution and development of cost accounting. It is a process of accounting for the incurrence and the control of cost. 3- Differences between cost accounting & financial accounting. 1.2. Reduction in costs means … 2 Cost and management accounting Provides management with costs for products, inventories, operations or functions and compares actual to predetermined data It also provides a variety of data for many day-to-day decision as well as essential information for long-range decisions 5- Functions & advantages of cost accounting. Introduction and Classification of Cost Concept of Cost.