Financial Management Accounting Projet

2. FINANCIAL MANAGEMENT ACCOUNTING PROJECT
SUBJECT : COST ACCOUNTING AND FINANCIAL
ACCOUNTING
BY ASIMANANDA MAHATO

3. ACCOUNTING DEFINATION
i. IT IS THE METHODS FOR RECORDING TRANSACTIONS.
ii. IT IS A SYSTEMATIC PROCESS OF IDENTIFYING,
RECORDING,MEASURING,CLASSIFYING,
VERIFYING,SUMMERARIZING AND COMMUNICATING
FINANCIAL INFORMATION.
iii. IT REVEALS PROFIT OR LOSS FOR A GIVEN PERIOD SND THE
VALUE AND NATURE OF A FIRM’S ASSETS LIABILITIES AND
OWNERS EQUITY.
**** IT PROVIDES INFORMATION ON THE RESOURCES AVAILABLE TO A FIRM.

4. ACCOUNTING
FINANCIAL
ACCOUNTI
NG
MANGERIAL
ACCOUNTING
COST
ACCOUNTING
TAX
ACCOUNTING
FORENSIC
ACCOUNTING
AUDITING
ACCOUNTING
INFORMATION
SYSTEM

5. COST ACCOUNTING
IT MEANS THE RECORDING OF ALL THE COSTS INCURRED IN A
BUISNESS IN A WAY THAT CAN BE USED TO IMPROVE ITS
MANAGEMENT.
DEFINATION : IT IS A SYSTEM FOR RECORDING, ANALYZING AND
ALLOCATING PRODUCTION
AND DISTRIBUTION COSTS.
AND KEEPING OF SUCH RECORDS.

6. FEATURES OF COST ACCOUNTING
a. IT IS A PROCESS OF ACCOUNTING FOR COSTS.
b. IT RECORDS INCOME AND EXPENDITURE RELATING TO
PRODUCTION OF GOODS AND SERVICES.
c. IT IS COCERNED WITH COST ASCERTAINMENT, COST
CONTROL AND COST REDUCTION.
d. IT PROVIDES STATISTICAL DATA ON THE BASIS OF WHIC
FUTURE ESTIMATES ARE PREPARED AND QUOTATIONS ARE
SUBMITTED.

7. OBJECTIVES OF COST ACCOUNTING
a. TO ASCERTAIN THE COST PER UNIT OF THE DIFFERENT
PRODUCTS MANUFACTURED BY A BUSINESS CONCERN.
b.TO PROVIDE A CORRECT ANALYSIS OF COST BOTH BY PROCESS
OR OPERATIONS AND BY DIFFERENT ELEMENTS OF COST.
c. TO ADVISE MANAGEMENT ON FUTURE EXPANSION POLICIES
AND PROPOSED CAPITAL PROJECTS.
d.TO PROVIDE REQUISITE(ABSOLUTELY NECESSARY) DATA AND
SERVE AS A GUIDE FOR FIXING PRICES OF PRODUCTS
MANUFACTURED OR SERVICES RENDERED.

8. ADVANTAGES OF COST ACCOUNTING
i. PRICE FIXATION : THE TOTAL COST OF A PRODUCT IS AVAILABLE IN THE
COSTIING RECORDS.IT IS HIGHLY USEFUL FOR PRICE FIXATION OF A
PRODUCT.
ii. COST REDUCTION : NEW AND IMPROVED METHODS OF PRODUCTION
ARE FOLLOWED UNDER COST ACCOUNTING SYSTEM. IT LEADS TO COST
REDUCTION.
iii. HELPS TO PREPARE FINANCIAL ACCOUNTS : THIS INFORMATION IS
SUPPLIED BY THE COSTING RECORDS AND HELPS TO PREPARE
FINANCIAL ACCOUNTS WITHOUT ANY FURTHER DELAY.

9. DISADVANTAGES OF COST ACCOUNTING
1. ONLY PAST PERFORMANNCES ARE AVAILABLE IN THE COSTING
RECORDS, BUT THE MANAGEMENT IS TALKING DECISION FOR
FUTURE.
2.THE COST OF PREVIOUS YEAR IS NOT SAME IN THE SUCCEEDING
YEAR. HENCE COST DATA ARE NOT HIGHLY USEFUL.
3.INSTALLATION OF COST ACCOUNTING SYSTEM REQUIRES THE
MAINTENANCE OF MANY COSTING RECORDS. IF RESULTS IN
HEAVY EXPENDITURE.

10. FINANCIAL ACCOUNTING
IT IS A TYPE OF ACCOUNTING THAT DEALS WITH PROVIDING FINANCIAL
REPORTS ABOUT A COMPANY’S PROFIT, DEBT, CASH FLOW ETC
DEFINATION : FINANCIAL ACCOUNTING IS THE PROCESS IN WHICH
BUSINESS TRANSACTIONS ARE RECORDED SYSTEMATICALLY IN THE VARIOUS
BOOKS OF ACCOUNTS MAINTAINDED BY THE ORGANIZATION IN ORDER TO
PREPARE FINANCIAL STATEMENTS. THESE FINANCIAL STATEMENTS ARE
BASICALLY OF TWO TYPES :
i. PROFIT AND LOSS ACCOUNT
ii. BALANCE SHEET

11. OBJECTIVES OF FINANCIAL ACCOUNTING
i. MAINTENANCE OF RECORDS OF BUSINESS TRANSACTIONS.
ii. CALCULATION OF PROFIT AND LOSS.
iii.PROCESSING OF FINANCIAL POSITION.
iv.PROVIDE INFORMATION TO THE PARTIES

12. ADVANTAGES OF FINANCIAL ACCOUNTING
I. Financial information about business: Accounting makes available financial
information that is the profit earned or loss suffered and also what are the
assets and liabilities of the enterprise . To provide information useful for the
making economic decision.
II. To provide users with information for predicting comparing and evaluating
the earning power of the enterprise.
III. Financial reporting for movement and banks and shareholders.
IV.It helps to prepare in bank reconciliation statement.
V. It helps in bookkeeping of the organization.

13. DISADVANTAGES OF FINANCIAL ACCOUNTING
i. ACCOUNTING DOES NOT INDICATE THE RELEASABLE VALUE:
THE BALANCE SHEET DOES NOT SHOW THE AMOUNT OF
CASH WHICH THE FIRM MAY REALIZE BY THE SALE OF ALL
ASSETS.

14. DIFFERENCE BETWEEN COST ACCOUNTING AND FINANCIAL ACCOUNTING

15. THANK YOU