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Is cost accounting relevant while financial accounting is in place?
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What are the difference between cost accounting and financial accounting?
Prime role of cost accounting is to calculate the cost per unit of product produce while financial accounting deals with financial reporting of company's performance.
What is the difference between What is the difference between financial accounting and management accounting?
Financial accounting is used to present the performance and financial statements to third parties while management accounting is used for company's internal working purpose.
What is different between cost accounting and financial accout?
Cost accounting deals with calculating the per unit cost of unit of product while financial accounting deals with reporting of financial performance of the busines
What is the Difference between integrated and interlocking accounting system?
Integrated system is one which combines the cost accounting and financial accounting functions in one system of ledger accounts while an interlocking system has a cost ledger for the cost accounting function and a financial ledger for the financial accounting function.
What are the basic concept are accounting?
Major aspect of accounting in any business organization is financial accounting and inventory accounting. While the financial accounting deals with the monetary aspects the inventory accounting deals with the quantitative aspects of the goods and services of the business organization. Important financial accounting aspects are payment voucher, journal voucher, cashbook, general ledger, bank reconciliation and trial balance. Important inventory accounting aspects are opening balance, purchases, sales and closing balance.
Difference between cost accounting and costing?
Ans. (1) Costing is a dynamic technique in which changes may take place from time totime in comparison to cost accounting that enables to determine and controlthe cost of manufactured goods.PDF Created with deskPDF PDF Writer - Trial ::
What are the basic accounting concepts and conventions?
Major aspect of accounting in any business organization is financial accounting and inventory accounting. While the financial accounting deals with the monetary aspects the inventory accounting deals with the quantitative aspects of the goods and services of the business organization. Important financial accounting aspects are payment voucher, journal voucher, cashbook, general ledger, bank reconciliation and trial balance. Important inventory accounting aspects are opening balance, purchases, sales and closing balance.
What is the difference between cost accounting and financial accounting and what is the different between cost accounting and management accounting?
Cost accounting and managerial accounting are really the same thing. The key difference between managerial/cost and financial accounting is that managerial accounting information is aimed at helping managers within the organization make decisions. In contrast, financial accounting is aimed at providing information to parties outside the organization. cost is the amount of the expenditure. In cost accounting we can find cost of goods and services. financial accouts shows the profit and loss and balance sheet made during an accounting period, and also financial position of the business as on a particular date. cost accouting provides the management detailed information regarding cost of each product, services etc. Cost Accounting focuses on the costs of production and inventory valuations. Management Accounting produces internal financial reports and analysis prepared in such a way to assist managers in making decisions (such as expense reduction, capital investment, etc.). Financial Accounting produces financial reports in accordance with GAAP and legal guidelines and would generally be the format which is distributed externally for banks, investors, etc.
Differences and similarities between managerial accounting and Financial Accounting?
* Cost accounting relies on financial accounting information (unbiased, support material) * both are concerned with responsibility or stewardship to the organization: financial accounting has responsibility to the whole company while cost accounting is concerned with responsibility for parts (costs and revenues) * Both require accounting information that must be relevant, timely, and accurate.
What is the relationship between cost accounting and managerial accounting?
Financial accounting relates to the information presented based on past events and records. Cost and managerial accounting is the presentation of financial information to the management to be used in decision making while in managerial accounting projections are made based on past trends. e.g. projected cashflows, profit & loss, balance sheet... Financial accounting relates to the information presented based on past events and records. Cost and managerial accounting is the presentation of financial information to the management to be used in decision making while in managerial accounting projections are made based on past trends. e.g. projected cashflows, profit & loss, balance sheet... Financial accounting reports are in standard formats which are worldwide accepted , where as Cost accounting reports are in the format as required by the management
Difference between financial management and financial accounting?
The differences between management accounting and financial accounting include:Management accounting provides information to people within an organization while financial accounting is mainly for those outside it, such as shareholdersFinancial accounting is required by law while management accounting is not. Specific standards and formats may be required for statutory accounts such as in the I.A.S International Accounting Standard within Europe.Financial accounting covers the entire organization while management accounting may be concerned with particular products or cost centres.Managerial accounting is used primarily by those within a company or organization. Reports can be generated for any period of time such as daily, weekly or monthly. Reports are considered to be "future looking" and have forecasting value to those within the company.Financial accounting is used primarily by those outside of a company or organization. Financial reports are usually created for a set period of time, such as a fiscal year or period. Financial reports are historically factual and have predictive value to those who wish to make financial decisions or investments in a company. Management Accounting is the branch of Accounting that deals primarily with confidential financial reports for the exclusive use of top management within an organization. These reports are prepared utilizing scientific and statistical methods to arrive at certain monetary values which are then used for decision making. Such reports may include:Sales Forecasting reportsBudget analysis and comparative analysisFeasibility studiesMerger and consolidation reportsFinancial Accounting, on the other hand, concentrates on the production of financial reports, including the basic reporting requirements of profitability, liquidity, solvency and stability. Reports of this nature can be accessed by internal and external users such as the shareholders, the banks and the creditors.
How and why does accounting treat sole proprietorships and partnerships and corporations alike?
Accounting is a means of recording a business's transactions. The rules and standards applied are fairly universal and are meant to provide the most fair and accurate depiction of the company's financial position at any time. From this point of view, the business structure is irrelevant. While certain transactions or expenses may not be relevant to all three structures, the method of accounting for the business transactions is the same.
