HW1 - raw material and in-process inventory and may also...

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Valerie Bodden K. 10-0014 Cost Accounting January 14, 2011 Management Accounting is known to be: Process of preparing management accounts that provide accurate and timely key financial and statistical information required by managers to make day-to-day and short-term decisions . Unlike financial accounting (which produces annual reports mainly for external stakeholders such as creditors , investors , and lenders ) management accounting generates monthly or weekly reports for the firm's internal audiences such as department managers and the chief executive officer . These reports typically show the amount of available cash , sales revenue generated, amount of orders in hand, state of accounts payable and accounts receivable , outstanding debts
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Unformatted text preview: , raw material and in-process inventory , and may also include trend charts , variance analysis , and other statistics . Also called managerial accounting . On the other hand, Cost Accounting is defined as: Method of accounting in which all elements of cost incurred in carrying out an activity or accomplishing a purpose are collected, classified , and recorded. This data is then summarized and analyzed to arrive at a selling price , or to determine where savings are possible . In contrast to financial accounting (which considers money as the measure of economic performance ) cost accounting considers it as the economic factor of production ....
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