“Discussion on any three specialized branches of accounting, their importance, limitations, and effect in decision making process”
1.1 Introduction: Accounting is a very interesting field. Accountancy is the science of recording classifying and summarizing transactions so that relation with outsiders is exactly determined and result of operation during a particular period can be calculated and the financial position as the end of the period may be shown. There are many specialized branches of accounting. In our assignment we discuss only three specialized branches of accounting. They are cost accounting, managerial accounting and human resource accounting. In the case of cost accounting cost calculations are done keeping historical and estimated costs cost accounting and the process calculating costs vary accounting to nature of business manufacturing activity or operating activities. Managerial accounting applies to all types of businesses–service, merchandising and manufacturing. Managerial accounting deals with the needs of the management rather than strict compliance with generally accepted accounting principles. It involves budgeting and forecasting, financial analysis, cost analysis, evaluation of business decisions, and similar areas. Human resource accounting is an extension of the Accounting principles of matching the costs and revenues and of organizing data to communicate relevant information. The Quantification of the value of Human resources helps the management to cope up with the changes in its quantum and quality so that equilibrium can be achieved in between the required resources and the prove. Human Resource Accounting provides useful information to the management.
1.2 Objectives:
(1) To know about the three specialized braches of accounting.
(2) To know about their importance.
(3) To know about their limitations.
(4) To know about their effect in decision making.
1.3 Limitations:
(1) Lack of accounting knowledge.
(2) Lack of information
(3) Shortage of time
2.1.1Cost Accounting:
Cost accounting is the accounting of the cost. It is made of two words-
1.2 Objectives:
(1) To know about the three specialized braches of accounting.
(2) To know about their importance.
(3) To know about their limitations.
(4) To know about their effect in decision making.
1.3 Limitations:
(1) Lack of accounting knowledge.
(2) Lack of information
(3) Shortage of time
2.1.1Cost Accounting:
Cost accounting is the accounting of the cost. It is made of two words-