Cost accounting is a vital part to industrial and manufacturing engineering.
One cannot expect to make any company more efficient without first taking into account the cost of goods and services. In short, cost accounting consists of many different elements, all of which factor into the total cost of production. Cost accounting is defined as the science of recording and presenting business transactions pertaining to the production of goods and services. However, before discussing cost accounting, the actual meaning of the term cost must be defined. To the buyer, cost simply means the price of the product he or she wants to buy.