Following are the characteristic features of Cost Accounting:

1) Cost accounting views the whole organization from the individual component of the organization like a job, a process etc.

2) Cost accounting aims at ascertaining the profitability of individual components of the organization.

3) It is meant for those people who are part of the decision making process of the organization. Thus, it is only for internal use.

4) It is not a legal requirement. It is not compulsory to maintain cost accounting records.

5) In Cost Accounting, data is immediately available which facilitates in decision making process.

6) Cost Accounting considers each and every transaction, whether related to past or future which will have an impact on the business.