Cost accounting is a branch of accounting that is concerned with the determination and control of the costs of producing goods or services. Its primary objective is to provide information to management for decision-making purposes related to the efficient allocation of resources and the setting of prices for products or services.

Cost accounting involves the collection, classification, analysis, and interpretation of financial data related to the costs of producing goods or services. This information is used to measure and improve the efficiency and effectiveness of production processes, as well as to make informed decisions regarding pricing, product mix, and resource allocation.

Cost accounting is also used to calculate the cost of goods sold, which is an important figure for financial reporting purposes. By accurately determining the cost of producing goods or services, a company can determine its profit margins and make informed decisions about its pricing strategies.

Overall, cost accounting provides essential information to management for controlling costs, improving profitability, and making informed decisions about resource allocation and pricing.