Cost accounting · Subject guide
Understand what things cost—and why.
Learn cost concepts, compare costing approaches and practice assigning costs to products, jobs and services.
Your route through cost accounting
Work through these stages in order, or open the topic you are reviewing for class.
01 · Foundations
Get the cost vocabulary right
Understand the purpose of cost accounting and how costs are classified.
02 · Methods
Choose and compare costing methods
Explore how costing methods collect and assign costs.
03 · Application
Apply the ideas to a job
Work through questions and explain the cost flow in your own words.
Put the lesson into practice
Work through a break-even and CVP example · Compare static and flexible budgets
Before solving a problem, state the cost object, identify the costs included and show the allocation or calculation clearly.
Study with a purpose
- Read one lesson and summarize its central idea.
- Write an example without copying the solution.
- Check each step and keep a note of the mistake you corrected.
Need a definition? Use the accounting glossary. Want a quick check? Choose an accounting quiz.