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.
Get Your FREE Exam Secrets Cheat Sheet!
Plus a 3-Part CMA Video Course
82,000+ accounting and finance pros got their free CMA cheat sheet.
Get yours too, today!