1. Costing is a computation of all types of costs involved in the production of a type of goods or services.
2. Costing covers all activities involved in collecting and analyzing the cost to components on a regular basis such as raw material costs, labor costs, and overhead costs.
3. Costing concepts can be applied in manufacturing, agriculture, services, and construction sectors.
4. For firms that issue their own goods for sale, the management has to control the cost of production so that the reasonable selling price can be set. This can guarantee a profit margin to the business.