Cost accounting is a branch of accounting that focuses on capturing a company's total production costs. It helps businesses understand the costs associated with their operations, including materials, labor, and overhead. By analyzing these costs, companies can make informed decisions about pricing, budgeting, and financial planning, ultimately improving profitability. This type of accounting is essential for managers and business owners as it provides detailed insights into where money is being spent. Tools like cost analysis and budgeting are often used to track expenses and identify areas for cost reduction. Overall, cost accounting plays a crucial role in effective business management.