Cost Accounting – Determines the Cost of Production and Helps in Pricing Decisions

Cost Accounting is a specialized branch of accounting that focuses on recording, analyzing, and controlling costs associated with producing goods or providing services. It provides vital information for pricing, budgeting, and cost control, helping managers make better financial and operational decisions.

1. Purpose of Cost Accounting

• To determine the cost per unit of production or service.

• To assist in setting appropriate prices.

• To identify areas of inefficiency and reduce waste.

Management Accounting is a branch of accounting that focuses on providing timely, detailed, and relevant financial and non-financial information to managers and internal stakeholders. Unlike Financial Accounting, which serves external users, Management Accounting is designed to support planning, controlling, and decision-making within the organization.

1. Purpose of Management Accounting

• To help managers make informed strategic and operational decisions.

• To assist in budgeting, cost control, and performance evaluation.

• To provide data for forecasting and planning future activities.

2. Features of Management Accounting