Submitted By

Roshan Shahane
(PGPM/0911/029)

Submitted To
Mr. Pawan
Q1. Trace the relation between Financial Accounting & Management Accounting
with example.

Ans:- Financial Accounting -Financial accounting is used primarily by those

outside of a company or organization. Financial reports are usually created for a set
period of time, such as a fiscal year or period. Financial reports are historically
factual and have predictive value to those who wish to make financial decisions or
investments in a company.

Management Accounting:- Managerial accounting is used primarily by those

within a company or organization. Reports can be generated for any period of time
such as daily, weekly or monthly. Reports are considered to be "future looking"
and have forecasting value to those within the company.

The relation between financial accounting and

management accounting is concerned with accounting information that is useful to
management. Whatever information extracted is being utilized for the constructive
future policies and financial forecasting of the firm.

Example:- From the yesteryear financial statements, the firm could plan the
volume of sales, volume of purchase, size of the debtors, creditors, stock of the
firm, cash required by the firm on everyday to meet financial commitments and so
on. This all above information management organize and maintain in such a way
so that the chances of happening all predefined or allotted expenses and expected
revenue can company earn.
Q2 Give an outline of future trends & challenges of management costing &
control.

Ans:- management costing & control is the process by which companies control and plan the
costs of doing business. For instance, before a project is started, the anticipated costs should be
identified and measured. These expenses should then be approved before any purchasing occurs.
During the process of completing a project, all incurred costs should be noted and kept in a
record of some kind, to help ensure that the costs are controlled and kept in line with initial
expectations, to the extent that this is possible.

Regardless of their industry or the size of their

business, in today's environment chief financial officers and finance organizations face enormous
pressure to drive growth and deliver high performance. They consistently face a fundamental
challenge: the ability to balance investment in the business to fuel future growth with the
urgency to scale back and cut costs to weather the difficult economy.