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 manufacturing their products or providing services. By analyzing these costs, companies can make informed decisions about pricing, budgeting, and financial planning. This type of accounting involves tracking direct costs, such as materials and labor, as well as indirect costs, like overhead expenses. Cost accountants use this information to prepare reports that assist management in controlling costs and improving profitability. Overall, cost accounting is essential for effective financial management and strategic decision-making.