Chapter equity, balance sheet, and statement of cash flows.
External parties include stockholders, suppliers, debtors, banks,
government agencies, etc.
Purpose of Financial statements
The purpose of financial statements is to provide information
about the performance of the company over the period, company
equity over the period (month, or quarter, or year), and cash
flows of an enterprise over the period (month, or quarter, or
year) to outsiders for their decision.
Cost Accounting
Cost accounting is that part of accounting concerned with the
determining and accumulating the cost of products or processes,
or activities.
Example-Standard costs and V/S actual costs of operations or
products, Job order wise costs, determination of process costs,
establishment of Budget, etc.
Purpose of Cost Accounting
The purpose of cost accounting is establishing budget and actual
cost of operations, processes, departments or products and the
analysis of variances.
Managers use cost accounting information to support decision
making or to reduce a company's costs and improve its
profitability.
Management Accounting
Management accounting is the field of accountancy concerned with
the preparing of management reports with the help of financial
accounting and cost accounting in order to assist internal
management in formulating strategy, future planning and
controlling activities.
Management reports are generated monthly or weekly or even on
daily basis for organization's internal audiences such as chief
executive officer, CFO, departmental managers, etc.
Examples- Cash available report at month end, Number of orders in
hand, Status of accounts payable and accounts receivable,
Outstanding debts, Trend charts, Wastage report, Yield report,
break even point, etc.
External parties include stockholders, suppliers, debtors, banks,
government agencies, etc.
Purpose of Financial statements
The purpose of financial statements is to provide information
about the performance of the company over the period, company
equity over the period (month, or quarter, or year), and cash
flows of an enterprise over the period (month, or quarter, or
year) to outsiders for their decision.
Cost Accounting
Cost accounting is that part of accounting concerned with the
determining and accumulating the cost of products or processes,
or activities.
Example-Standard costs and V/S actual costs of operations or
products, Job order wise costs, determination of process costs,
establishment of Budget, etc.
Purpose of Cost Accounting
The purpose of cost accounting is establishing budget and actual
cost of operations, processes, departments or products and the
analysis of variances.
Managers use cost accounting information to support decision
making or to reduce a company's costs and improve its
profitability.
Management Accounting
Management accounting is the field of accountancy concerned with
the preparing of management reports with the help of financial
accounting and cost accounting in order to assist internal
management in formulating strategy, future planning and
controlling activities.
Management reports are generated monthly or weekly or even on
daily basis for organization's internal audiences such as chief
executive officer, CFO, departmental managers, etc.
Examples- Cash available report at month end, Number of orders in
hand, Status of accounts payable and accounts receivable,
Outstanding debts, Trend charts, Wastage report, Yield report,
break even point, etc.
