Cost accounting is a process of assigning costs to cost objects that typically include raw materials, labor, and overhead. The purpose of cost accounting is to estimate the total cost for a product or service. This can be done by adding up the costs for each type of expense.

Raw materials are the supplies used in production. Labor is the sum of salaries and wages paid to employees. Overhead is any other expense not directly related to production, such as rent, utilities, office supplies, etc.

In this course, you will be introduced to cost accounting in its simplest form.