What to you mean by costing?

Question

Accepted Answer

Costing refers to the process of determining the cost of a product or service.

Costing involves identifying and analyzing all the costs associated with producing a product or service.
It helps in determining the selling price of a product or service by adding a profit margin to the cost.
Costing can be done using various methods such as job costing, process costing, and activity-based costing.
For example, a company manufacturing a car would consider the cost of raw materials, labor, overheads, and other expenses to determine the cost of producing the car.
Costing is an important aspect of management accounting and helps in making informed business decisions.