CA Inter Cost And Management Accounting by Adv. Amit Kumar
About CA Inter Cost and Management Accounting
Accounting is a business language. We can use this language to communicate financial transactions and their results.
Cost accounting and management accounting are two crucial terms in accounting which might be used to control and formulate the organisation’s regulations.Both are used for different purposes with different styles.
Let’s look at the main differences.
Cost accounting deals with calculating and assessing costs and expenses to purchase or produce something.
It relates to the calculation per unit cost using different costing techniques.
Its primary purpose is to facilitate managers in decision-making.
The main activities of cost accounting are Budgeting:
In cost accounting, various budgets are prepare, showing cost, revenue, profit, production capacity, and efficiency of plant and machinery, as well as the efficiency of workers.
The finances is planned in a scientific and systematic manner this is regularly specific to the business enterprise, as reports aren’t certain to the ideas of Generally Accepted Accounting Principles (GAAP).Classify and break down costs for external reporting and internal profit measurement.
Since costs are calculate on a detailed level, identifying profitable and unprofitable items or activities becomes easy.
Management accounting relates to the provision of appropriate information for decision-making, planning, cost control, and performance evaluation.
Management accounting turns data into information, knowledge, and wisdom about a business entity’s operations.
This is one step further than cost accounting.
Management accounting works to know the reasons for profit or loss and studies the factors which influence efficiency to assist in decision making.
Therefore, cause and effect is an important feature of management accounting.
About Advocate Amit Kumar teacher of CA Inter Cost and Management Accounting
Advocate Amit Kumar has been teaching direct and indirect tax for more than 15 years.
His field of expertise is taxation.
He has taught more than 15,000 students to date.
He is visiting the faculty of ICAI & Provides webinars to students of “The Institute of Cost Accountants of India”.
His students are placed in overall multinational companies on the highest posts.
He also always motivates his students to achieve big.
His lectures are a blend of humor, interaction & deep knowledge of the subject & lectures are full of life.
Click here to know more about:- Advocate Amit Kumar