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what are the similarities between cost accounting and
management accounting?
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Answer / pavan
Cost accounting, managment accounting, and financial
accounting all use basic financial accounting concepts to
arrive at their indended goal. All 3 use techniques such as
depreciation, present values, future values, accruals,
deferals, and inventory valuations (such as LIFO and FIFO).
Although the reports that they create are each different,
the basic statements remain similar in construction and
terminology. Managment accounting is specifically for the
use of top level managers who are interested in appeasing
shareholders. Therefore, managerial accounting is constantly
searching for higher net incomes and benefits for the
shareholders.
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