Cost accounting is an internal financial process for tracking, analyzing, and managing a company's costs to improve operational efficiency, control spending, and inform decision-making regarding pricing, budgeting, and resource allocation. It classifies costs into categories like direct materials, labor, and overhead to understand the true cost of producing goods or services, unlike financial accounting, which is for external reporting and follows strict standards like the Generally Accepted Accounting Principles (GAAP)
- Teacher: Ivan Twang