Costing is the ascertainment of cost   It involves the determination of cost of goods and services and the relationship of these costs to sales and profits   A costing system is used by a business to collect information about costs for planning and decision making         Management accounting   Financial Accounting     Information is used within a business No legal requirement No requirement to comply with IAS Focus on specific areas of an organisation's activities Uses predetermined costs, estimates and budgets for decision making Focuses on generating forecast & budget information   For both internal and external use Often has a legal requirement There is the need to comply with IAS Concentrates on the organization as a whole Uses historical data Focuses on external reporting         Planning   Organising   Controlling   Decision Making   Motivation     Relevant for decision making   Complete for its purpose   Should be sufficiently accurate for its purpose   It should be clear to the manager using it   It should be timely   It should be provided at a cost which is less than the value of the benefits it provides