Cost accounting is the process of analyzing, collecting, recording, classifying and evaluating costs to control costs and provide information to management for planning and decision making. It tracks the resources and labor used to produce goods and services. Cost accounting provides detailed cost information to management to control current operations and plan for the future. The objectives of cost accounting are to control costs, assist in planning and decision making, assist in operations, and assist in calculating future costs. The main types of cost accounting are standard costing, lean accounting, marginal costing, and activity-based costing.

1. COST ACCOUNTING
BY BL Hlatshwayo

2. What is Cost
Accounting?

3. Cost Accounting
• COST ACCOUNTING: is the process
of analyzing, collecting, recording,
classifying and evaluating various
alternative courses of action and
control costs.
• Cost accounting is a method of
keeping track of the resources and
labor utilized to produce a given
good or perform a specific task.

4. According to Patel (2017)
Cost Accounting provides the detailed cost information that the
management needs to control current operations and plan for the
future.
Cost accounting is defined as the establishment of budget and actual
cost of operations, process, activities or products and analysis of
variances, profitability or social use of funds
Its goal is to advise the management on the most appropriate course
of action based on the cost efficiency and capability.

6. OBJECTIVES OF COST
ACCOUNTING
• To control cost by employing a variety of
methods, including budgetary control,
standard costing, and inventory
management
• to give data for planning and decision-
making and to create operational
procedures.
• To assist in directing and operations
• To assist in calculating future cost

9. TYPES OF COST
ACCOUNTING
• Standard cost- considers a standard cost for
all direct costs involves in the production
process. It is one of the best accounting
methods for small or medium-sized
businesses.
• Lean accounting is a practice that advocates
the reduction of wastage and an increase in
productivity.
• marginal costing considers total fixed and
variable costs for all products produced.
• Activity based-costing this types is used to
track and analyze the fixed and variable costs
based on the business objectives that the
direct costs of a product line fulfill.

10. Advantages of cost accounting
Helps in preparations for financial
account
Helps in determining loss or profit of
the company
 Assistance to the management, cost
accounting is an aid to management
as it helps them to understand the
pattern of the cost incurred and how
to control it.
Helps the government, Government
needs information on the company’s
financial statement to assess the tax
and charge the tax according to the
profit gained by the company

11. Advantages of cost accounting continues…
• According to Panchal (2017), cost accounting benefit to the
management, creditors, employees, to the government and to
consumers.
• According to Mahajan (2019), cost accounting helps in fixation of
selling price and it also helpful in planning and decision making.
• Cost accounting also help to check on the accuracy of financial
accounts.

12. Disadvantages of cost accounting
• Only Past Performances Can be Recorded, Cost accounting only
records historical valuations of actual transactions, not the firm's
state when the transaction occurred.
• According to Alagappan (2014) the advantage of cost accounting it
that is expensive and the system is more complex.
• Cost accounting it not useful for determining tax liabilities

13. Reference list
• Alagappan, K. (2014). Introduction to cost accounting.Cost accounting.
https://www.slideshare.net/karpagam93/cost-accounting-42905549
• Mahajan, K. (2019). Cost accounting. Commerceiets.
https://www.slideshare.net/KAJALMAHAJAN10/cost-accounting-
196503751
• Patel, E. (2017). Cost accounting and effectiveness. Cost accounting.
• Panchal, S. (2017). Cost accounting.
https://www.slideshare.net/shilpipanchal2/cost-accounting-71948692
• Paitil, B. (2012). Cost accounting.
https://www.slideshare.net/BabasabPatil/cost-accounting-ppt