The concept of cost analysis and management system has gained much significance due to the expansion and growth of cement industry, increased competition and increase in the information needs of the users. Cost and expenses are different but relative terms. Where ‘cost’ includes the cost of material and labour in addition to expenses, the term ‘expenses’ is widely applied in financial accounts for various types of historical cost. In cost accounting, it is used for costs other than cost of raw material and wages. On making purchases of raw materials, financial accounts keep records of purchases and creditors meticulously but do not keep records of raw materials. The cost accounts keep additional detailed records in respect of each material showing receipts, issues and balance in terms of quantity and value. Thus, detailed records of utilisation in respect of all inputs of material, labour and other services are maintained in the cost department so as to determine cost of sales of each product/job and when the same is compared with the sales, the profit or loss for each product/job is arrived at (as against the total profit revealed by the financial accounts). To supplement data contained in the annual reports, personal discussions were also held with the officials of the cement companies mainly to go deeper in the study and also to clarify certain points which emerged out of the study. In the present study, an effort has been made to review the analysis of cost analysis and management system of cement industry in India.