Explore BrainMass

Explore BrainMass

    Cost accounting vs financial accounting

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The General Manager of a company has decided to employ a cost accountant. He has asked you, the financial controller, to write a memorandum to the members of the Board of Directors outlining why cost accounting is necessary, and how it differs from financial accounting.

    © BrainMass Inc. brainmass.com March 5, 2021, 12:46 am ad1c9bdddf
    https://brainmass.com/business/financial-accounting-bookkeeping/cost-accounting-versus-financial-accounting-534822

    Solution Preview

    INTEROFFICE MEMORANDUM

    To: The Board of Directors
    From: Financial Controller
    Subject: The Importance of Cost Accounting & how it differs from Financial Accounting
    Date: April 4, 2013

    In the accounting world, there are several different types of accounting that are used by firms. These include, financial accounting, management accounting, cost accounting, governmental accounting, tax accounting, forensic accounting and social accounting. In our company, we mainly use financial accounting, management accounting and cost accounting.

    Financial accounting, or financial ...

    Solution Summary

    This solution first gives a brief definition of financial accounting, as well as management and cost accounting. It tells the main difference between financial accounting and management accounting (by extension cost accounting). It then seeks to give several reasons as to why cost accounting is necessary in firms today. [348 words]

    $2.49

    ADVERTISEMENT