Cost and management accounting examples

Cost management accounting is a form of accounting that aims to improve a company’s profitability by managing, controlling and eliminating expenses.
Cost accounting helps businesses determine the costs of products, projects and processes, which shows the company where its earning and losing money and is an integral part of budget planning.

One type, standard costing, estimates the cost of goods sold and inventory based on the most efficient use of labor and materials under typical operating conditions.
Another type, activity-based accounting (ABC), identifies and allocates costs to the activities involved with producing a good or service.