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Cost accountinghelps in understanding the concept of overall costs involved in the products or services of the firm. Also, helps in the process of decision making. This concept uses different kinds of input values such as direct labor and material cost, quantity, sales price, etc. The main role of cost accountingis that it helps the managers to understand where to invest and from where to divest, basically how to save the money.

This concept is different from traditional cost accounting. Traditional cost accounting works on the past data basically on the weekly, or monthly production data. While the lean cost accountingworks on the regular basin that is on the daily report. Lean cost accounting considers inventory as an asset in opposite to traditional accounting.