In Accounting cost means, incurred in carrying out an activity or accomplishing a purpose are collected, classified, and recorded. It may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. It is 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 in Accounting can be most beneficial as a tool for management in budgeting and in setting up cost control programs, which can improve net margins for the company in the future.
Cost in Accounting
