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    Classification of Accounting

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    ravi0292
    Accounting can be classified into three main disciplines: financial accounting, cost accounting, and management accounting. Financial accounting involves recording historical financial information to prepare financial statements about a business's income, losses, and financial position. Cost accounting classifies and analyzes costs based on functions, processes, products, and centers. Management accounting builds on financial and cost accounting by processing that data to aid managerial decision making and applying economic concepts.

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    Classification of Accounting

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    ravi0292
    21K views1 page
    Accounting can be classified into three main disciplines: financial accounting, cost accounting, and management accounting. Financial accounting involves recording historical financial information to prepare financial statements about a business's income, losses, and financial position. Cost accounting classifies and analyzes costs based on functions, processes, products, and centers. Management accounting builds on financial and cost accounting by processing that data to aid managerial decision making and applying economic concepts.

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    Accounting can be classified into three main disciplines: financial accounting, cost accounting, and management accounting. Financial accounting involves recording historical financial information to prepare financial statements about a business's income, losses, and financial position. Cost accounting classifies and analyzes costs based on functions, processes, products, and centers. Management accounting builds on financial and cost accounting by processing that data to aid managerial decision making and applying economic concepts.

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    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    21K views1 page

    Classification of Accounting

    Uploaded by

    ravi0292
    Accounting can be classified into three main disciplines: financial accounting, cost accounting, and management accounting. Financial accounting involves recording historical financial information to prepare financial statements about a business's income, losses, and financial position. Cost accounting classifies and analyzes costs based on functions, processes, products, and centers. Management accounting builds on financial and cost accounting by processing that data to aid managerial decision making and applying economic concepts.

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    Classification of Accounting

    In order to satisfy needs of different people interested in the accounting


    information, different branches of accounting have developed.

    Accounting is generally classified into three different disciplines as shown in


    Figure.

    Accounting

    Financial Cost Management


    Accounting Accounting Accounting

    Financial Accounting: Accounting involves recording, classifying and


    summarizing of past events and thus is historical in nature. It is Historical
    accounting which is better known as Financial accounting whose primary intention
    is to prepare the Statements revealing the Income / Loss and financial position of
    the business on the basis of events, which have happened in the period being
    reckoned.

    But this information, though of immense vitality does not adequately aid the
    management in planning, controlling, organizing and efficiently conducting the
    course of the business as a result of which Cost Accounting and Management
    Accounting are in place.

    Cost Accounting: It shows classification and analysis of costs on the basis of


    functions, processes, products, centers etc. It also deals with cost computation,
    cost saving, cost reduction, etc.

    Management Accounting: Management Accounting begins where Financial


    Accounting and Cost Accounting ends. It deals with the processing of data
    generated in financial accounting and cost accounting for managerial decision-
    making. It also deals with application of managerial economics concepts for
    decision-making.

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