Cost accounting primarily deals with which of the following?

Cost accounting focuses on identifying, measuring, analyzing, and controlling the costs associated with a product or service. This discipline provides critical data that helps managers understand production costs, set prices, and ultimately improve profitability.

By tracking variable and fixed costs associated with production, cost accounting allows businesses to allocate costs accurately, assess the efficiency of operations, and make informed decisions regarding budgeting and financial planning. The information derived from cost accounting helps organizations to conduct break-even analyses, compare actual costs to budgeted costs, and pinpoint areas where cost savings can be realized.

In contrast, overall financial health, operating expenses not tied to manufacturing, and market trends are areas relevant to broader financial management and strategic decision-making but do not encapsulate the core function of cost accounting. Cost accounting is specifically concerned with the costs directly attributable to improving and analyzing products and services, making it distinct from these other facets of business analysis.