![]() Costing- Costing is defined as “the technique and process of ascertaining costs”.As a noun, it can be defined as the amount of expenditure (actual or notional) incurred on or attributable to a specified article, product or activity.Īs a verb, it can be as an action to ascertain the cost of a specified thing or activity. ![]() It can be expressed as a noun as well as a verb. Cost- Cost is the amount of resource given up in exchange of some goods or services.In this chapter, we will learn various aspects of Cost and Management Accounting and its application in manufacturing and service environment. Cost Leadership, also in line with the subject Cost and Management Accounting, can be achieved if an entity has a robust Cost and Management Accounting system in place. In a business environment where each entity is thriving to achieve apex position not only in domestic but global competitive market, it is essential for the entity to fit into any of the three competitive strategic dimensions. ![]() ![]() Porter in his theory of Generic Competitive Strategies has described ‘Cost Leadership’ as one of the three strategic dimensions (others are ‘Product differentiation’ and ‘Focus or Niche’) to achieve competitive advantage in industry.Ĭost Leadership implies producing goods or provision of services at lowest cost while maintaining quality to have better competitive price. ![]()
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