In the realm of financial management, cost accounting and advanced accounting are two crucial branches that provide organizations with critical financial insights and support decision-making processes. As a financial professional responsible for both cost accounting and advanced accounting functions within an organization, please provide an in-depth response to the following inquiry, elucidating the intricate aspects of these disciplines:

Cost Accounting:

Fundamental Principles: Begin by explaining the fundamental principles and objectives of cost accounting. What distinguishes cost accounting from other accounting branches, such as financial accounting? How does cost accounting aid in the allocation of expenses and the determination of product or service costs?

Cost Classification: Describe the various classifications of costs within cost accounting, including direct costs, indirect costs, variable costs, and fixed costs. How does the proper classification of costs impact financial reporting and decision-making within an organization?

Costing Methods: Discuss the different costing methods used in cost accounting, such as job costing, process costing, and activity-based costing (ABC). Provide examples of scenarios where each of these methods is most appropriate, and explain how they contribute to cost analysis and control.

Budgeting and Variance Analysis: Explore the role of budgeting and variance analysis in cost accounting. How do budgets help organizations plan and monitor their expenses? Describe the process of calculating and interpreting variances, and discuss how this information can be used for performance evaluation and cost control.

Inventory Valuation: Explain the significance of inventory valuation methods within cost accounting, including FIFO, LIFO, and weighted average. How do these methods impact the balance sheet and income statement, and what are the tax implications associated with each?