Economic and financial management accounting, also known as analytical accounting, is an accounting technique whose purpose is to create an information system that makes it possible to know the cost of the products manufactured.
Cost accounting lays the foundation on which management accounting is built and serves as a conduit for the necessary information exchange that must take place between financial accounting and management accounting.
In fact, the difference between reports for external use and internal cost accounting reports is that the latter can be designed according to the management style, the industry and the specific wishes of the company executives who will use the information.
Cost accounting is an information system that focuses on determining the costs of the products (goods or services) offered by the organization, relating them to the revenues obtained from their sale, thus generating information for decision making..
The term costs usually has many meanings; in accounting terms it is the value of the resources given in exchange for some item or service, among these resources are a disbursement of money or the acquisition of a commitment.