Introduction to management accounting

Question	Answer
FINANCIAL ACCOUNTING	Financial accounting is mainly to do with external reporting.Financial accountants provide information to external parties regarding the companies performance(statement of P & L) and its position(statement of financial position).
MANAGEMENT ACCOUNTING	Management accounting is mainly to do with internal reporting.Management accountants provide information to the board of directors for them to make the right decision at the right time.
COST	Cost is an expenditure you are incurred to attributable for a specific product or service.
COST UNIT	Cost unit can be defined as a product or service in relation to which cost are ascertained.
COMPOSITE COST UNIT	Composite cost unit can be defined as any cost that has more than one cost basis.This is generally seen only in the service industry.
COST CENTRE	Cost centre is any production or service location,function,activity or item of equipment for which cost are accumulated.

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	Created by Sulanka Thomasz about 10 years ago