Final answer:
Cost accumulation is the process of recognizing and recording all costs incurred by a company, which is essential in managerial accounting for tracking and categorizing production and service delivery costs.
Step-by-step explanation:
Cost accumulation is the recognition and recording of costs. This is a key concept in managerial accounting where businesses need to track and categorize various costs associated with production or service delivery. The process involves collecting, organizing, and recording all costs that a company incurs.
This can be direct costs like raw materials and labor, or indirect costs such as overhead. Cost measurement involves assigning a monetary value to these costs, while cost assignment refers to applying accumulated costs to goods or services.
On the other hand, job-order costing is a system used to assign costs to specific jobs or batches of products, which is particularly useful where each job is distinct and has different requirements.