Question

What is the difference between the management requirements for project costing and financial accounting. What are the different reports required.

Answer 1

The distinction between the management necessities for project cost accounting and money accounting-

1- price and management accounting is for finance professionals and business managers or house owners whose role it's to take care of records to spot wherever to chop prices for enhanced profitableness.
Financial accounting is for accountants whose role it's to record all transactions and accurately report the complete money image and performance of a business.

2- price management professionals book actual transactions and compare them to estimates. They then base reports on the estimation of price and on the recording of actual transactions.
Financial accounting professionals value actual transactions solely and don't use estimation in recording money transactions.

3- accountancy involves the preparation of a broad vary of reports that management has to run a business.
Financial accounting involves the preparation of a typical set of reports for an out of doors audience.

4- price management accounting is employed as per the necessity of management or on Associate in Nursing as-and-when-required basis.
Financial accounting is needed throughout the report amount at the top of the year.

5- accountancy involves making reports that may be in any format nominative by management. there's no restrictive framework governing accountancy reports in order that they is tailor created to suit a definite cost accounting would like or social control demand.
The reports ready underneath money accounting area unit extremely specific in their format and content. The structure {of money|of monetary|of economic} accounting reports is tightly ruled by either usually accepted accounting principles or international financial news standards.

6- accountancy sometimes ends up in reports at a way higher level of detail among the corporate.
Financial accounting’s primary focus is on news the results and money position of a complete business entity.