Know the differences between Financial & Managerial Accounting.
Financial accounting is mainly used by external users, investors, and creditors who want a
snapshot of a business as a whole. This type of accounting deals with historical, quantitive,
Know the differences between Absorption and Variable Costing
Absorption Costing: The costs of all manufacturing components consisting of direct material,
direct labor, variable overhead and fixed overhead is viewed as inventorial and costs in
Know the ABC flow of costs thru to the financial statements.
(MLO, WIP, Fin Gds, CGS, NI)
ABC=Activity Based Costing
Activity Based Costing is defined as a cost accounting system that focuses on an organizations
activities and collects costs on the basis