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Document from the year 2013 in the subject Business economics - General, grade: A, ( Atlantic International University ), course: Business Administration, language: English, abstract: To make production effectively, costs like labor, overhead and material costs all together must be incurred. In fact in the production process every cost plays it role to make the production effective. Take an example of labor cost no production can take place without labor cost, however much it's the use of machines but the devices too are controlled by labor or humans.Cost reveals financial evaluation or assessments of resources prolonged to accomplish the goal like producing conducive service. In other words cost is the driver of all the income and expenditure statements. Costs appear everywhere be it in financial accounting, management accounting and in cost accounting governed by its principles. Therefore it should be noted that cost accounting enables the company and the managers to have information about the period financial reports. But this doesn't mean that the released reports are the generally accepted ones by the Generally Accepted Accounting Principles (GAAP).