An Interface Between Financial Accounting and Cost & Management Accounting and Some Concepts of Strategic Cost Management
Introduction:
The basic objective of accounting is to provide information that is useful in making business and economic decisions. What makes accounting information useful for decision-making? The answer is however the accounting information confirms to the qualities that should be possessed by the financial and cost & Managerial reporting. In view and addition to this, the importance of strategic cost management and costing techniques like Activity based costing should not be underestimated. This implies that organization should be installing appropriate framework of strategic cost management to reduce its costs in key areas on which the success of organization is heavily dependent.
Objective of the study:
The Project is presented with the following objectives:
1. To understand the various interfaces between financial accounting and Cost & management accounting
2. To understand the concept & significance of Strategic Management Programme.
3. To understand the basic idea and concepts of managerial accounting.
Main branches of accounting:
○ Financial Accounting
Financial accounting is relating to record all financial activity. These activities are related to business. Because of area of business is increasing day by day so the area of financial accounting is also increasing. Every day a new type of business is started. So daily accountant invents a new journal entry. Accountant will take the help of financial accounting with new thinking of result. So a new chapter of financial accounting is included by us.
○ Cost Accounting
If you want to increase your profit, then start to decrease your cost. What a dialogue, this is not a dialogue but this is the reality of today business. Every day an accountant invents new method of decreasing the cost. All method of calculation of FIFO, LIFO, standard costing, variance calculation and making of cost budget is not the end of cost accounting but this is the starting of cost accounting. Internet cost reduction method is also a
The basic objective of accounting is to provide information that is useful in making business and economic decisions. What makes accounting information useful for decision-making? The answer is however the accounting information confirms to the qualities that should be possessed by the financial and cost & Managerial reporting. In view and addition to this, the importance of strategic cost management and costing techniques like Activity based costing should not be underestimated. This implies that organization should be installing appropriate framework of strategic cost management to reduce its costs in key areas on which the success of organization is heavily dependent.
Objective of the study:
The Project is presented with the following objectives:
1. To understand the various interfaces between financial accounting and Cost & management accounting
2. To understand the concept & significance of Strategic Management Programme.
3. To understand the basic idea and concepts of managerial accounting.
Main branches of accounting:
○ Financial Accounting
Financial accounting is relating to record all financial activity. These activities are related to business. Because of area of business is increasing day by day so the area of financial accounting is also increasing. Every day a new type of business is started. So daily accountant invents a new journal entry. Accountant will take the help of financial accounting with new thinking of result. So a new chapter of financial accounting is included by us.
○ Cost Accounting
If you want to increase your profit, then start to decrease your cost. What a dialogue, this is not a dialogue but this is the reality of today business. Every day an accountant invents new method of decreasing the cost. All method of calculation of FIFO, LIFO, standard costing, variance calculation and making of cost budget is not the end of cost accounting but this is the starting of cost accounting. Internet cost reduction method is also a
References: 1. www.vancechan.com/strategic-cost_management.html 2. www.indianmba.com 3. www.uakron.edu/uba/scm/issues.html