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Cost accounting (or management accounting) complements general accounting by breaking down expenses and revenues by cost center, project, department, or product. It enables managers to know the true profitability of each activity and make informed decisions.

Practical Applications

• Cost price calculation: Real production cost per item or service.
• Project analysis: Profitability of each project or contract.
• Budgeting: Budget vs. actual comparison by activity center.
• Decision-making: Abandoning or developing a product line based on its margin.

The analytical module of GestiumERP enables automatic allocation of entries to analytical axes defined by the company. See also the difference between financial management and accounting management.