Cost Accounting Law and Legal Definition

Cost accounting is the process of identifying and evaluating production costs. It is a type of accounting that focuses on recording, defining, and reporting costs associated with specific operating functions.

The following is an example of a case law on cost accounting:

Cost accounting is an accounting method or technique which is used for measurement of cost, assignment of cost to cost accounting periods or allocation of cost to cost objectives. [Perry v. Martin Marietta Corp., 47 F.3d 1134 (Fed. Cir. 1995)].