Cost accounting is a part of managerial accounting. In this type of accounting a person is specialist in recording and analyzing costs of production and distribution. A cost accountant is required to get as much of information on the cost of operations, the processes, on the departments and products so that budgets can be made which are used by the managers to reduce costs in a company and simultaneously increasing their profitability.
Although a cost accountant is not to follow GAAP rules as the this accounting is done for internal managers rather than for the external managers or users but certain rules of the company as to what they want the accountant to compute and how they want it to be done is solely based on the organizations internal structures.
A cost accountant has to analyze, research on different product related issues as to what are the changes that should be taken into consideration. They provide financial support to the management and this data collection also helps in internal auditing.
Although a cost accountant is not to follow GAAP rules as the this accounting is done for internal managers rather than for the external managers or users but certain rules of the company as to what they want the accountant to compute and how they want it to be done is solely based on the organizations internal structures.
A cost accountant has to analyze, research on different product related issues as to what are the changes that should be taken into consideration. They provide financial support to the management and this data collection also helps in internal auditing.