What are cost accounting methods?

K

kuldeep

Member
I’ve been learning a bit about accounting, and I’m curious—what are cost accounting methods? From what I understand, they’re different ways businesses track and analyze costs, like job costing, process costing, standard costing, or activity-based costing. For those of you working in finance or management, which method do you find most useful in practice? And do certain industries prefer one method over another?
 
Cost accounting methods are techniques used to record, analyze, and allocate costs of production or services. Common methods include job costing, process costing, activity-based costing, and standard costing. These help businesses control expenses, improve efficiency, and set accurate pricing strategies.
 
There are different kinds of cost measurement methods: Job Costing, Process Costing, Activity-Based Costing (ABC), Marginal Costing, Absorption Costing, and Standard Costing. All of them serve different business needs in cost allocation, decision-making, and performance evaluation.
 
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