Maintaining a record of finances is the most significant part of every organization’s management process. The cost accounting process is proficient for this. This process helps you measure and analyze the cost incurred in carrying out a particular activity. Cost accounting helps in evaluating the company’s cost of production by analyzing the input cost as well as the fixed cost. It assesses the costs of every step of production. It first measures and records all the cost individually and after that, it compares the input results to the actual results for measuring the financial performance of the organization.