0
What is the difference between cost accounting management accounting and financial accounting?
Wiki User
∙ 12y ago
S.No.
Basis
Cost Accounting
Financial Accounting
1.
Scope
It is suitable only for such business concerns which are engaged in manufacturing, production, mining or providing some service (e.g. bus company electric supply company etc.)
It is suitable for all businesses - manufacturing, production or even in marketing only.
2.
Pre-determined and historical accounting
In cost accounting, the expenditure to be incurred is estimated and standard cost of product is found. Thus, it act as a pre-determined process.
In Financial accounting, accounting is done after the expenditure has already been incurred and not prior to that. So it is historical accounting.
3.
Nature of transactions
Transactions related with production activities only are accounted for in this method. Donations, dividend received, etc. are not taken into account as these are not related with production.
All economic transactions are taken into account, whether these are related with production or not.
4.
Selling price
By cost accounting the price of the product can be fixed more accurately in a scientific manner.
In the absence of information about cost, the selling price fixed by this method may be misleading.
5.
Profit & Loss
Profit calculated by this method expresses the result of production activities.
Profit calculated by this method expresses the profit of the organization.
6.
Information about cost
Full and correct information about the cost, per unit cost, various elements of cost, etc. of the product is made available in cost accounting.
Financial accounting does not give such detailed and correct information.
__________ Abhishek Karagwal, Chairman Stallions Pvt. Ltd
Contact me at : abhi541@hotmail.com
ph: 07737816441
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
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 the difference between financial accounting and cost and management accounting?
Financial accounting is the preparation of financial statements for decision makers. Cost accounting is collecting, analyzing, summarizing, and evaluating courses of action. Management accounting is simply used to better a company by reviewing the accounting information.
How does cost accounting relates to management accounting and financial accounting?
cost accounting provides the basic information for both management and financial accounting.The similarities between government accounting and financial accounting is that both involves the balance of accounts.
Explain the difference between financial accounting and management accounting?
Management accounting is a tool that managers use to perform day-to-day operations in an organization. This type of accounting usually does not provide exact numbers, but rather estimate and forecast. Financial accounting is a tool used to present the financial status of the organization to its external stakeholders. This type of accounting provides accurate numbers.
Difference between strategic financial management and financial management?
What is the similarity between financial managment and strategic financial managment
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.
Define 'Accounting' Distinguish between Financial Accounting and Management Accounting?
Define 'Accounting' Distinguish between Financial Accounting and Management Accounting
What is the difference between cost accountant and financial accountant?
DISTNGUISH between finance, management accountant and financial accounting
What is the difference between financial accounting and cost and management accounting?
Financial accounting is the preparation of financial statements for decision makers. Cost accounting is collecting, analyzing, summarizing, and evaluating courses of action. Management accounting is simply used to better a company by reviewing the accounting information.
How does cost accounting relates to management accounting and financial accounting?
cost accounting provides the basic information for both management and financial accounting.The similarities between government accounting and financial accounting is that both involves the balance of accounts.
Explain the difference between financial accounting and management accounting?
Management accounting is a tool that managers use to perform day-to-day operations in an organization. This type of accounting usually does not provide exact numbers, but rather estimate and forecast. Financial accounting is a tool used to present the financial status of the organization to its external stakeholders. This type of accounting provides accurate numbers.
Internal and External Reporting Requirements?
differentiate between financial Accounting and management accounting
Difference between strategic financial management and financial management?
What is the similarity between financial managment and strategic financial managment
What is the difference between accountancy and bookkeeping?
Bookkeeping is the maintenance of the company's financial records. Accounting is the analysis and interpretation of that data for management and planning purposes.
A basic difference between managerial accounting and financial accounting is that managerial accounting?
One basic difference between managerial accounting and financial accounting is that managerial accounting is used internally instead of externally for investors. Managers use managerial accounting to determine what level of output is appropriate for their departments.
What is the major difference between finance and accounting?
The major difference between finance and accounting is that, accounting is general, deals with all economic facts that occur throughout the financial year, financial is specific deals only with finances
What is the Difference between government accounting and financial accounting?
The biggest difference is that government account is non-profit and based on funds....also called fund accounting. They do not have profits. Financial accounting tracks income and have or hope to have a profits.
