ABSTRACT
The cost engineer must be familiar with cost accounting since it is the accountant
who keeps the cost records. Moreover the cost engineer should be part of a team
in the allocation of overhead and other indirect costs. The first part of this chapter
discusses the basic concepts of cost accounting and how they are used on a
project. The second part discusses various classifications of accounts. Although
the presentation in the first part of this chapter favors work associated with engin-
eering and construction for the oil and chemical industries, the principles are
general.
