Cost accounting can help you understand the costs of running a business. Cost accounting information is designed to analyse:
- What types of costs that you incur when you run a business?
- Where do the costs occur?
- Who bears the costs?
In cost accounting, you allocate actual and budgeted costs of operations, departments, products, and projects to analyse the profitability of your company.
You define cost types, cost centres, and cost objects to analyse what the costs are, where the costs come from, and who should bear the costs.
You define a chart of cost types with a structure and functionality that resembles the general ledger chart of accounts. You can transfer the general ledger income statement accounts or create your own chart of cost types.