Introduction
Cost is the amount of money an organisation spends in producing a unit of the product. There are various types of costs incurred in producing a unit of the final product. Some of these costs are fixed and some are variable. Some costs are distributed among various products being produced in an organisation. Accounting for all these costs to derive at final value of a product is known as cost accounting. The paper aims at contrasting the two main types of cost accounting systems, which are process cost accounting and activity based accounting system.
The paper is divided into three sections. ...