Question

Briefly explain/define the following and how they are inter-related: 'management accounting', 'cost accounting', 'activities management' and 'financial reporting'

Answer 1

Management Accounting can be defined as a process of providing financial information and resources to the managers in decision making.

Cost Accounting can be define as the recording of all the costs incurred in a business in a way that can be used to improve its management.

Activity Management can be define as the process of recording the day to day doings of an employee, in an order in which they are done, all while labeling their activity correctly. It helps in firm success as it helps to control direction of our business and increase efficiency.

Financial reporting refers to the communication of financial information of the entity, like financial statements, to investors, creditors and Stakeholders. It is typically viewed as companies issuing financial statements.

INTER - RELATED BETWEEN ALL :

  Cost accounting provides information for management accounting and financial accounting. Cost accounting measures, analyses and reports financial and non-financial information relating to the costsof acquiring or using resources in an organisation. The information gathered that can be used by a management or financial accountant if required. For example estimating the cost of a product is a cost accounting process that answers the financial accountants inventory-valuation needs for providing management with information to make decisions regarding which products to sell. Managers can not manage costs directly, but managing activities that consume resources will assist in creating value.Financial accounting focusses on reporting to external users such as shareholders, lenders and suppliers but management is also concerned with financial reporting as it can directly affect them also. In conclusion, Cost accounting supports management accounting, activity management and cost accounting are more related as compared to other.

All are some or the other way releated and helpfull in business Enrichment, we can't concure our goal without all the above stated matters.