Core Definitions: Cost, Costing, Cost Accounting, Cost Accountancy, Management Accounting, Cost Management

## Core Definitions in Cost & Management Accounting

Understanding these six terms is foundational. Each has a precise meaning in professional practice.

### Cost

• As a noun: The actual or notional expenditure incurred on a specific article, product, or activity.
• As a verb: The action of determining the cost of a particular thing or activity.
• In plain language: resources (money, time, materials) given up to obtain goods or services.

### Costing

• The technique and process of ascertaining costs for products or services.
• Forms the foundation of an organisation's internal financial information system.
• Provides data for planning, controlling activities, and making future decisions.

### Cost Accounting

• The process of accounting for costs — from recording income and expenditure to preparing periodic statements and reports.
• Starts with recording, ends with reports that help control and ascertain costs.

### Cost Accountancy

• The application of costing and cost accounting principles, methods, and techniques.
• Covers the science, art, and practice of:
• Cost control
• Profitability determination
• Presenting information for managerial decision-making
• Broadest of the three "cost" terms.

### Management Accounting

• Application of accounting and financial management principles to create, preserve, protect, and increase value for stakeholders.
• Applies to both for-profit and not-for-profit organisations.
• Assists management with: Planning → Organising → Controlling → Decision-Making

### Cost Management

• Uses management accounting concepts for cost planning, monitoring, and control.
• Tools: data collection, analysis, and presentation methods.
• Goal: optimise resources and improve overall performance.

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### Hierarchy of Terms (Scope Comparison)