The subject of the diploma thesis is the accounting monitoring of costs on the example of the food industry. Costs are an essential feature of any company's overall operations, so it is essential to analyze cost information and learn how to manage it. The aim of this thesis is to interpret the concept of cost, highlight its components and analyze modern and traditional methods. Traditional cost accounting methods are related to the type of production, are simpler to apply, but do not provide accurate information that is needed for long-term business. One of the main disadvantages of this method is providing a false picture of the exact costs of a particular product. We have two types of traditional methods, namely work order costing and process system. Modern methods enable precise and accurate results of cost accounting, which traditional methods do not enable. The modern method that is covered in this thesis is the method of calculating costs by activity, i.e. the ABC method. The results obtained from the ABC method in the long term can help managers to focus their attention on the improvement of activities that will ultimately have an effect on the profitability of the company itself. The primary goal of this paper is to take three products from the Podravka range, and calculate costs using one traditional and one modern method. With the traditional method, the process method was used, while with the modern ABC method. A cost calculation was made, the gross margin was calculated, and it was easy to come to a conclusion as to which method Podravka should use when calculating costs.