Cost Accounting Concepts are the measurement, analysis and reporting of all the costs associated with running a business. This includes both the fixed costs, such as the cost of premises or equipment, and the variable costs that change with production, such as raw materials and wages. Cost accounting is an invaluable tool for understanding the full economic picture of a business, so that informed decisions can be taken about investment and operations. With cost accounting concepts, businesses will be able to track and minimize costs, improve productivity and optimize their bottom line.