ABSTRACT
This chapter looks to the contextualize cost accounting from the lens of history and to see what cost accounting tools or techniques developed during different periods. It seeks to understand why cost accounting has struggled to live up to its potential to support various aspects of government financial management. Cost accounting maintained a connection with the accounting function, particularly for lower levels of government that received federal grants. The historical record shows that cost accounting has been at its best when it has been most clearly aligned with the broader practices of budgeting and accounting. The modern years have been ones of both standardization and resistance to cost accounting. While cost accounting maintained a limited connection with accounting for federal grants, it became much less associated with budgeting. The one area where continued interest in cost accounting has remained is in the area of performance management.
