Monday, November 5, 2012

Differences among Financial Accounting, Cost Accounting and Management Accounting

Financial Accounting: It limits its activities in recording transactions and determining financial result and position. It is also called ‘Stewarding Accounting’.

Cost Accounting: It takes the responsibility of determining cost of production and services and controlling cost with a view to maximizing profit. It is also called ‘Control Accounting’.

Management Accounting: It takes the duty of helping management in planning and decision making. The applied position of Cost Accounting is Management Accounting. It is also called ‘Decision-Making Accounting’.

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