cost accounting
Cost accounting deals with ascertainment , allocation , apportionment accounting aspect of costs.Management accounting deals with the effect and impact of costs on the business.
2. Cost accounting provides a base for management accounting whereas management accounting is derived from cost accounting and financial accounting.
3. Cost accounting does not include financial accounting , tax planning and tax accounting. Management accounting includes financial and cost accounting , tax accounting and tax planning.
4. Cost accounting is concerned with short term planning. Management accounting is concerned with short range and long range planning.
5. Cost accounting merely assists the management with functioning.Management accounting assists and evaluates the management performance.
6. Cost accounting can be installed with management accounting but management accounting can not be installed without cost and financial accounting
Audience. Financial accounting involves the preparation of a standard set of reports for an outside audience, which may include investors, creditors, credit rating agencies, and regulatory agencies. Cost accounting involves the preparation of a broad range of reports that management needs to run a business.
Format. The reports prepared under financial accounting are highly specific in their format and content, as mandated by either generally accepted accounting principles or international financial reporting standards. Cost accounting involves creating reports that can be in any format specified by management, with the intention of including only that information pertinent to a specific decision or situation.
Level of detail. Financial accounting primarily focuses on reporting the results and financial position of an entire business entity. Cost accounting usually results in reports at a much higher level of detail within the company, such as for individual products, product lines, geographical areas, customers, or subsidiaries.
2. Cost accounting provides a base for management accounting whereas management accounting is derived from cost accounting and financial accounting.
3. Cost accounting does not include financial accounting , tax planning and tax accounting. Management accounting includes financial and cost accounting , tax accounting and tax planning.
4. Cost accounting is concerned with short term planning. Management accounting is concerned with short range and long range planning.
5. Cost accounting merely assists the management with functioning.Management accounting assists and evaluates the management performance.
6. Cost accounting can be installed with management accounting but management accounting can not be installed without cost and financial accounting
Audience. Financial accounting involves the preparation of a standard set of reports for an outside audience, which may include investors, creditors, credit rating agencies, and regulatory agencies. Cost accounting involves the preparation of a broad range of reports that management needs to run a business.
Format. The reports prepared under financial accounting are highly specific in their format and content, as mandated by either generally accepted accounting principles or international financial reporting standards. Cost accounting involves creating reports that can be in any format specified by management, with the intention of including only that information pertinent to a specific decision or situation.
Level of detail. Financial accounting primarily focuses on reporting the results and financial position of an entire business entity. Cost accounting usually results in reports at a much higher level of detail within the company, such as for individual products, product lines, geographical areas, customers, or subsidiaries.