Some accountants find their expertise at recording and reporting of current and prospective costs and analyzing their trends. Cost accounting is frequently used to facilitate internal decision making and provides tools with which a small business owner can appraise performance and control costs of doing business
This discipline of accounting tries to estimate, track and control various product costs. Cost accounting helps a small business owner make optimum decisions about purchase, sell, changes in products, service levels, etc.
Micro detailed analysis of costs facilitate the small business owner arrive at useful decisions regarding the overall business functions and profitability drilled to the last layer. Cost accountants may follow any of these four methods – standard costing, activity based costing, marginal costing and throughput costing method. Management accounting differs from cost accounting in the sense that the later is used as an aid to managerial decision making process.
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