Cost Accounting � PAGE �2�
Running Head: COST ACCOUNTING
Cost Accounting
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Ans.1
Yes, Generally Accepted Accounting Principals (GAAP) is made for financial accounting. Management accounting is for internal purposes and can be flexible to meet the requirements of the organization. Management accounting is done for internal purpose of the organization. Generally, accepted principals govern only those transaction or accounting systems which are related to the external users like the financial reports. In financial accounting, accounts and reports provide financial information to the external users. To ensure the reliability of the financial reports, GAAP makes some rules and principals for the financial accounting.
Management accountants are not responsible for the statements of financial accounting. Management reports are made in away that they can help the internal users. Reports of the management accountants are used internally. Reports or accounting statements are formed in an informal way. Management accounting helps the management in decision making.
Historical financial statement
English: Fixed Cost in swedish Svenska: Fast kostn...
English: GPK Marginal Costing Structure Flow of Gr...Decisions of the management are based on information of cost & cost concepts and cost accounting is a part of management accounting (Management Accounting).
Ans. 2
Cost objective is a measurement of the cost for a special purpose. In cost objective an accountant does time calculation. It determines result of cost for an accounting period. Cost objective plays an important role in the costing and performance calculation of an organization. It represents a special type of accounting or calculation for the costing of an enterprise. Cost objective accounting divides all the costs in different items of a firm. It solves the problem of cost distribution.
Cost objective accounting divides all the costs according to the production and manufacturing operations. Every item has its different cost. It is an accounting system that separates the cost on different items. It is important for a firm to decide...