ABSTRACT
This chapter discusses the fundamentals of costing in detail. The basics of accounting, its types are explained in this chapter with special emphasis on cost accounting. The difference between cost accounting and financial accounting is detailed. The need and importance of costing, basics of costing, advantages and objectives of costing are explained. The various ways of cost classification including direct costs, indirect costs, period costs, and opportunity costs are elaborated in this chapter along with the elements of cost. The concept of cost centre and its utility is explained.
