For a particular company, accounting is integral to its sustenance. The overall accounting operations of a company run on three parallel work processes simultaneously, namely cost accounting, financial accounting and managerial accounting.
Many finance & management students often require financial or managerial accounting homework help, either due to a poor grasp of the basics or improper, insufficient knowledge.
This article lays down the core principles of each of the accounting branches. Read on and refresh your subject knowledge!
Core Principles
Cost Accounting= The primary function of cost accounting in a business is the determination of production & operational costs of a company. Direct, overhead and administrative costs are established by the cost accounting department of business.
In your assignments, you have to develop reports that enable the management to compare production costs with their acquired profits. College cost accounting homework help students prepare themselves for real-life scenarios.
Managerial Accounting= Preparation of financial documents is the key responsibility of this department. Company-wide decisions, long term investment planning and fund mobilizations are affected by managerial accounting reports.
Your managerial accounting homework will help you get acquainted with numerous decision making situations & events.
Financial Accounting= Finance accounting reports deliver information the financial position of a company to its investors, owners, shareholders and auditors.
Delivered via balance sheets, income statements and cash flow statements, finance accounting helps one understand the assets, liabilities and equity of a company.
Managerial Accounting vs. Financial Accounting vs. Cost Accounting
To state it all in simple terms, managerial accounting delivers financial reports to the managers of an organisation. Financial accounting reports, on the other hand, are the use of shareholders, creditors and other external parties.
Cost accounting involves the establishing and determining the actual costs of operations, activities and products and analysis of variances & profitability.
Comparing the three altogether, one can say that:
ü Cost accounting deals with gathering & analysis of cost related information and delivers quantitative data to the managerial department. Management accounting is more wide ranging and presents both quantitative & qualitative information to managers.
Cost accounting revolves all around cost estimation, cost control and reduction of expenditures. College Home Work is much more expansive as it covers decision making, strategizing, performance management and risk analysis.
ü Managerial accounting is a superset of both cost and finance accounting. All three branches work in tandem to deliver the most comprehensive financial report of a business.
Where finance accounting informs creditors & stakeholders about the financial position, cost accounting contributes to its report by presenting information about all the fixed & variable costs of the company.
ü Managerial accounting derives from both financial & cost accounting reports. Repots crafted b managerial accountant are tailor-made for the managerial board and assists them in making effective decisions.
That wraps up this little write-up on accounting and its branches. Lets’ hope you were able to learn something useful from it.