Operational Costing

Home » CMA Glossary Term » Cost Accounting » Operational Costing

Operational Costing refers to a cost accounting method used to ascertain the cost of a specific operation or process, often within industries where process costing is applicable. It involves tracking and analyzing expenses associated with each operational phase to determine the total cost incurred. This method is particularly useful in manufacturing environments where continuous production processes are prevalent. Operational Costing is a subset of process costing definition.

CMA Exam Academy 16-Week Accelerator Program