2. Definition of cost
An amount that has to be paid or given
up in order to get something.
In business, cost is usually
a monetary valuation of (1) effort,
(2) material, (3) resources, (4) time
and utilities consumed, (5) risks incurred,
and (6) opportunity forgone
in production and delivery of a good
or service. All expenses are costs, but
not all costs (such as
those incurred in acquisition of an income-
generating asset) are expenses.
3. Definition of costing
A managerial accounting method that
describes when all fixed and variable
costs, including manufacturing costs,
are used to compute the total cost per
unit. Full costing includes these costs
when computing the amount of money
it takes to produce and distribute one
unit of output.
4. Definition of cost accounting
A type of accounting process that aims to
capture a company's costs
of production by assessing the input
costs of each step of production as well
as fixed costs such as depreciation of
capital equipment. Cost accounting will
first measure and record these costs
individually, then compare input results to
output or actual results to aid company
management in measuring financial
performance.
7. Conclusion
Therefore I conclude here that cost
sheet
helps in fixing up the selling price more
accurately and helps the businessman
to minimize the cost of
production when there is a cut throat
competition.
