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What is the relationship between cost accounting financial accounting and managerial accounting?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 kiran asked over 2 years ago

Hi May I know, What is the relationship between cost accounting financial accounting and managerial accounting?

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7 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 acharya answered over 2 years ago

Hi, Accounting is “the art of recording, classifying and summarizing in a significant manner in terms of money transactions and events which are in part at least of a financial character, and interpreting the results thereof”. Accounting is the language effectively employed to communicate the financial information of a business unit of various parities interested in its progress.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

Accounting is “the art of recording, classifying and summarizing in a significant manner in terms of money transactions and events which are in part at least of a financial character, and interpreting the results thereof”. Accounting is the language effectively employed to communicate the financial information of a business unit of various parities interested in its progress.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 2 years ago

Accounting is “the art of recording, classifying and summarizing in a significant manner in terms of money transactions and events which are in part at least of a financial character, and interpreting the results thereof”. Accounting is the language effectively employed to communicate the financial information of a business unit of various parities interested in its progress. The object of financial accounting is to find out the profitability and to provide information about the financial position of the concern. Two important statements of financial accounting are Income and Expenditure Statement and Balance Sheet.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered over 2 years ago

> What is the relationship between cost accounting financial accounting > and managerial accounting? --Cost accounting, managment accounting, and financial accounting all use basic financial accounting concepts to arrive at their indended goal. All 3 use techniques such as depreciation, present values, future values, accruals, deferals, and inventory valuations (such as LIFO and FIFO). Although the reports that they create are each different, the basic statements remain similar in construction and terminology. Managment accounting is specifically for the use of top level managers who are interested in appeasing shareholders. Therefore, managerial accounting is constantly searching for higher net incomes and benefits for the shareholders. --Management accounting consists of cost accounting, budgetory control, inventory control, statistical methods, internal auditing and reporting. It also covers financial accounting.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Pankaj answered over 2 years ago

the relationship between cost accounting financial accounting and managerial accounting Financial Accounting is “the art of recording, classifying and summarizing in a significant manner in terms of money transactions and events which are in part at least of a financial character, and interpreting the results thereof”. Accounting is the language effectively employed to communicate the financial information of a business unit of various parities interested in its progress. The object of financial accounting is to find out the profitability and to provide information about the financial position of the concern. Two important statements of financial accounting are Income and Expenditure Statement and Balance Sheet. All revenue transactions relating to a particular period are recorded in this statement to decide the profitability of the concern. The balance sheet is prepared at a particular date to determine the financial position of the concern Cost Accounting Cost accounting is one of the important elements of accounting information about the problems of internal managerial control. Financial accounts are unable to meet information needs about the cost structure of a product. The need for cost determination and controls necessitated new set of principles of accounting and thus emerged ‘Cost accounting’ as a specialised branch of accounting. Cost accounting is the process of accounting for costs. It includes the accounting procedures relating to recording of all income and expenditure and preparation of periodical statements and report with the object of ascertaining and controlling costs. Such cost accounting is a good technique for ascertaining profitability and for decision making

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 veeru answered over 2 years ago

Accounting is “the art of recording, classifying and summarizing in a significant manner in terms of money transactions and events which are in part at least of a financial character, and interpreting the results thereof”. Accounting is the language effectively employed to communicate the financial information of a business unit of various parities interested in its progress. The object of financial accounting is to find out the profitability and to provide information about the financial position of the concern. Two important statements of financial accounting are Income and Expenditure Statement and Balance Sheet. All revenue transactions relating to a particular period are recorded in this statement to decide the profitability of the concern. The balance sheet is prepared at a particular date to determine the financial position of the concern

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Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered over 2 years ago

Dear Friend, as far as your query is concerned that What is the relationship between cost accounting financial accounting and managerial accounting? Let me informed that the relationship between cost accounting financial accounting and managerial accounting Financial Accounting is “the art of recording, classifying and summarizing in a significant manner in terms of money transactions and events which are in part at least of a financial character, and interpreting the results thereof”. Accounting is the language effectively employed to communicate the financial information of a business unit of various parities interested in its progress. The object of financial accounting is to find out the profitability and to provide information about the financial position of the concern. Two important statements of financial accounting are Income and Expenditure Statement and Balance Sheet. All revenue transactions relating to a particular period are recorded in this statement to decide the profitability of the concern. The balance sheet is prepared at a particular date to determine the financial position of the concern Cost Accounting Cost accounting is one of the important elements of accounting information about the problems of internal managerial control. Financial accounts are unable to meet information needs about the cost structure of a product. The need for cost determination and controls necessitated new set of principles of accounting and thus emerged ‘Cost accounting’ as a specialised branch of accounting. Cost accounting is the process of accounting for costs. It includes the accounting procedures relating to recording of all income and expenditure and preparation of periodical statements and report with the object of ascertaining and controlling costs. Such cost accounting is a good technique for ascertaining profitability and for decision making Management Accounting Cost accounting helps the internal management by directing their attention on inefficient operations and assisting in a day-to-day control of business activities. The costing data needs to be arranged, re-analysed and processed further for effective role in managerial process. In addition to costing and accounting data, managerial functions need the use of socio-economic and statistical data (e.g., population break-ups, income structure, etc.). Cost and financial accounting do not provide such information and this limitation pave the way for the emergence of management accounting. Management accounting is a systematic approach to planning and control functions of management. It generates information for establishing plans andcontrols. It provides for a system of setting standards, plans, or targets and reporting variances between planned and actual performances for corrective actions. Thus, Management accounting consists of cost accounting, budgetory control, inventory control, statistical methods, internal auditing and reporting. It also covers financial accounting. Management accounting is the process of identification, measurement, accumulation, analysis, preparation, interpretation and accumulation of financial information used by management to plan, evaluate, and control within an organisation and to assure appropriate use of and accountability for its resources. Hope answer was helpful to you Regards, Arjun Pratap Singh

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