Glossary · Accounting What is Costing (cost calculation)? Also known as: calculating the cost of production
Calculating the cost of one unit of a product, work or service by cost items. Costing is the basis for setting prices, planning profit and controlling expenses.
Example: The "Oq Tandir" bakery baked 1 000 loaves of bread: flour 1 800 000, yeast and salt 200 000, wages 600 000, gas and electricity 400 000 soum, 3 000 000 soum in total. The cost of one loaf is 3 000 000 : 1 000 = 3 000 soum. When the finished bread is received into the warehouse: Dt 2810 – Ct 2010, 3 000 000 soum (prepared by the author, hypothetical figures).Source: Britannica: Accounting — Cost finding ; 21-son BHMS, 141-band