INTRODUCTION Modern business firms utilize a variety of cost accounting practices in an effort to manage expenditures and maximize profits. The origin of many of these can be traced to cost related principles taught by military institutions. This paper will first review the development of cost accounting prior to the Civil War. Cost accounting principles and practices developed rapidly during the early 1800s. Prior to that date, very little effort was made by business owners to classify and manage various costs. The bookkeeping principles introduced by Pacioli in 1494 were little changed until the turn of the nineteenth century.