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DQ-1 week-1 (1).docx - Part-1 Difference Between Public...

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Part-1Difference Between Public Accounting and Managerial AccountingFinancial accounting is structured to produce financial records that are viewed by the media andinternal and external partners. Operational accounts to be exchanged within a company are thecore fields of management accounting. As the name means, public accounts are intended to beshared with both the public, involving all partners of the sector and the general public, whilemanagement accounting is intended to be shared only with the managers or members of both thecompany board, which allows the management to determine critical business development.Example
We may see variations in the following things by observing two statements above:1. Information on the indicator for management purposes have been presented: because on thebasis of this, management will realize when costs rise and thus would intend to reduce costs orboost performance and ultimately to improve profit.2. In order for managers to know the percentage of sales spend and determine whether to raiserevenues or to cut costs, each item will be viewed in percentage revenue.3. In particular, the reporting of the business profits will still be provided for managementreasons, in contrast with the estimates of the previous year, so as to make the managementconscious whether it is making improvements or whether its growth is slowing from last year.Part-2
manufacturing vs. selling/adminThe cost incurred during manufacture of a commodity are manufacturing costs. These expensesinclude direct manufacturing costs, direct work and overhead output costs. The expenses areusually shown as individual line items in the income statement. During the manufacturingprocess, an organization bears certain costs. The products used in the building of a commodityshall be the direct substance. Direct job is the part of the labor expense allocated to amanufacturing unit in the production phase. Overhead production costs are attributed toproduction units depending on a number of alternative schemes for allocation such as direct workhours or accrued computer hours. Examples of types of overhead output costs include:Equipment repair parts and supplies, Factory utilities, Depreciation on factory assets, Factory-related insurance and property taxes

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