COST ACCOUNTING
ASSIGNMENT NO.1 MB126 COST ACCOUNTING
Submitted in the partial fulfillment of the requirement for the award of degree of
MASTER OF BUSINESS ADMINISTRATION
Under The Guidance of Mr. Puneet Kapahtia
Submitted by Dipesh Bhamra (2012PGMB037)
S CHOOL OF M ANAGEMENT BAHRA UNIVERSITY WAKNAGHAT, DISTT. SOLAN (H.P)
COST ACCOUNTING
DIFFERENCE BETWEEN FINANCIAL ACCOUNTING, MANAGEMENT ACCOUNTING & COST ACCOUNTING
Financial Accounting Management Accounting accounting Cost Accounting Financial accounting concerned Management is Cost accounting is a process of analyzing, and evaluating
with the preparation of financial concerned with the provisions collecting, statements for decision makers, and such use of accounting summarizing
information to managers within various alternative courses of
as stockholders, suppliers, banks, organizations, to provide them action. Its goal is to advice the employees, government agencies, owners, and with the basis to make informed management on the most
other business decisions that will appropriate course of action allow them to be better based on the cost efficiency and
stakeholders.
equipped in their management capability. and control functions.
Financial accounting provides Managerial accounting has a Cost accounting is concerned summaries transactions. of past financial strong future orientation. with the present by tracking and analyzing the cost of goods and services.
Financial accounting is primarily Managerial accounting forces Cost accounting is concerned concerned with reporting for the much more on the parts, or with the business parts for the company as a whole. segments, of a company. preparation of a broad range of reports. Financial accounting is done for Management accounting is done Cost accounting is done for both people outside the organization for internal parties such as external and internal parties. or not involved in the day to day owner or top management. running of the company
2
COST ACCOUNTING
Financial accounting emphasizes Management on objectivity and verifiability.
accounting Cost accounting emphasizes on cost efficiency and capability.
emphasizes on relevance.
The
structure
of
financial Management
accounting
is The
structure
of
financial are not
accounting reports are governed confidential and is used by accounting by either accounting principles management only or international financial
reports
governed by any regulatory framework.
reporting standards. Financial accounting is Management accounting is not Cost mandatory for external reports. Accounting is also
mandatory for external reports. The objective of
mandatory for external reports.
financial The objective of management The objective of cost accounting is to provide is to ascertain the costs and
accounting is to know the results accounting
of the business and to ensure management all information as control it. control over the assets. and when required by them so that they can take right
decisions at right time.
Financial
accounting
is Management
accounting
is Cost accounting is concerned in
concerned about adequacy of concerned with how a report its use by managers to make disclosure. affects employees behavior. decisions.
Financial accounting classifies Management accounting records Cost accounting records the records and analyzes in the the accounting procedures in a expenditure in manner. an objective
transactions manner. Financial profit
subjective subjective manner.
accounting and loss of
shows Management
accounting
is Cost accounting provides details
the designed and intended for use of cost of each product, process by managers within the and job.
organization.
organization.
