Distinguish between Financial Accounting, Cost Accounting and Management Accounting.

Exercises · Q5

Q. Distinguish between Financial Accounting, Cost Accounting and Management Accounting.

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Basis	Financial Accounting	Cost Accounting	Management Accounting
Primary purpose	To ascertain overall profit/loss and financial position	To ascertain and control the cost of a specific product/job/service	To assist management in planning, controlling and deciding
Main users	External parties (creditors, banks, investors, government) and owners	Internal management	Internal management (top-level)
Period covered	Usually annual	As frequently as needed (daily/weekly/monthly)	As frequently as needed
Format	Governed by accounting principles/statutory formats	Governed by costing principles, more flexible	No fixed format — entirely need-based
Scope	Business as a whole	A specific product, job, process or service	Draws on both Financial and Cost Accounting, plus other data

Q.Distinguish between Financial Accounting, Cost Accounting and Management Accounting.