What accounting method assigns a dollar value to every input needed to provide a service?

Cost accounting is the accounting method that assigns a dollar value to every input needed to provide a service. This method focuses on capturing all costs associated with production or service provision, including direct costs such as materials and labor, as well as indirect costs like overhead. By doing this, organizations can analyze the cost structures of their services, make informed pricing decisions, and identify areas for efficiency improvements.

In the context of healthcare, for instance, cost accounting helps institutions understand the true cost of delivering different services, allowing for better budgeting and financial planning. This comprehensive tracking of costs is critical in determining the financial viability of services offered.

Other methods, such as charge accounting or reimbursement accounting, serve different purposes, such as tracking charges billed to patients or analyzing payment received from insurers, but do not focus on assigning costs to inputs in the same detail as cost accounting does.