MADE BY:

HARSHIT AND KALASH

 TOPIC:
DIFFERENCE BETWEEN FINANCIAL
ACCOUNTING,COST ACCOUNTING AND
MANAGEMENT ACCOUNTING.
 Financial
accounting :
Financial Accounting is the process of documenting, analyzing and
reporting every transaction of a business or an organization, in order to
assess the financial health and stability of the same. There are a set of
guidelines to be followed according to the Financial Accounting
Standards Board (FASB), US. These are also known as Generally
Accepted Accounting Principles (GAAP), formulated to provide ease,
credibility and uniformity to the accounting processes across
companies.
 Cost Accounting :

The purpose of cost

accounting is to analyse the
expenditure so as to ascertain
the cost of various products
manufactured by the firm and
fix the prices. It also helps in
controlling the costs and
providing necessary costing
information to management
for decision-making
 Management Accounting :

The purpose of management accounting is to assist the

management in taking rational policy decisions and to
evaluate the impact of its decisions and actions.
 Financial Vs Management Accountingent
Accounting
Managerial accounting is the one done in the view of
notifying the managers, directors and authorities of an
organization regarding the everyday operations, present
and future trends in the market, assumptions and plans to
be made for the future. The audience is internal. However,
financial accounting is a documentation of every
transaction for the audience outside the organization as
well like competitors, investor and bankers. It has strict
guidelines to be followed according to GAAP whereas
managerial accounting has no mandatory guidelines.
 MANAGEMENT ACCOUNTING
VS COST ACCOUNTING.

•Cost Accounting is all about the Cost and it includes things like Cost
control, Cost computation and Cost reduction.
Whereas Management Accounting is about managing the
organization and making effective decisions.
•Cost Accounting has a narrow scope whereas Management
Accounting has much broader scope.
•Cost Accounting helps the Business in preventing irrelevant spending
which sometimes goes beyond the budget.
Whereas Management Accounting gives an idea about how
Management should strategize.
T H A N K
Y O U