scope:

Cost accounting, or cost control as it is generally called, embodies the analysis and construction of all sales transactions in such a manner that it is possible to disclose periodically the total cost of each commodity sold, in addition to its cost element makeup in terms of material, labor, direct operating expenses, and overhead. The systems detailed in this manual develop details of these cost items so that they are recorded, summarized, analyzed, and interpreted in the most efficient and understandable manner. The end result of any cost control system is to produce the finest product at the lowest possible selling price to the consumer, consistent with sound business practices.