What is the Definition of costing ? Ans. :- Costing as the technique and process of ascertaining of costs . Q:- What is cost accounting and cost accountancy ? Ans :- Cost accounting is defined as the process of accounting for which cost which begins with the recording of income and expenditure or the bases on which they are calculated and ends with the preparation of periodical statements and reports for ascertaining and controlling costs . Cost accountancy Cost accountancy has been defined as 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. It includes the presentation of information derived there from for the purpose of managerial decision making. Cost - What is cost? Definition: In business and accounting, cost is the monetary value that a company has spent in order to produce something. Cost denotes the amount of money that a company spents on the creation or production of goods or services. It does not include the mark-up for profit. From a seller’s point of view, cost is the amount of money that is spent to produce a good or a product. If a seller sold his products at the production price, he would break even, meaning that he would not lose money on his sales. However, he would not make a profit either. From a buyer’s point of view the cost of a product can be called the price. This is the amount that the seller charges for a product, and it includes both the production cost and the mark-up cost, which is added by the seller in order for him to make a profit.
Cost, costing, cost accounting and cost accountancy are normally used interchangeably but they are not synonyms of each other. The meaning of these terms is related and similar but there are differences. **Cost**: Cost is commonly defined as ‘sacrificed resource’ for a particular thing.Cost refers to any amount of expenditure incurred / attributable to any particular thing. **Costing:** ‘Cost’ is a term whereas ‘Costing’ is a process for determining the cost. It may be called a technique for ascertaining cost of production of any product or service in business organization. **Cost Accounting:** This term is of utmost importance for the top management of any business. Cost Accounting is basically the next step to costing. Cost accounting involves analyzing relevant costing data, interpret it and present various management problems to management.
Dear Friend Cost: Cost refers to any amount of expenditure incurred / attributable to any particular thing. Costing: The method of ascertaining the cost and thereby controlling it is referred to as costing. Cost Accounting: The process of accounting for cost which begins with recording of income and expenditure or the bases on which they are calculated and ends with the preparation of periodical statements and reports for ascertaining and controlling costs. Thanks