GENERAL KNOWLEDGE

Detailed explanation-1: -Cost accounting is a large subset of managerial accounting. Cost Accounting focuses on ascertaining a company’s total costs of production by assessing the variable costs as well as fixed costs. It helps businesses in identifying and reducing unnecessary expenses and maximizing profits.

Detailed explanation-2: -Preparation of these data and reports is the focus of managerial accounting, which consists mainly of four broad functions: (1) budgetary planning, (2) cost finding, (3) cost and profit analysis, and (4) performance reporting.

Detailed explanation-3: -Cost accounting is a form of managerial accounting that aims to capture a company’s total cost of production by assessing the variable costs of each step of production as well as fixed costs, such as a lease expense. Cost accounting is not GAAP-compliant, and can only be used for internal purposes.

Detailed explanation-4: -Cost accounting helps companies identify areas where they may be able to better control their costs, and also informs pricing decisions to ensure profitability. Cost accounting figures are used only by a company’s internal management team, so collection methods can be customized according to company needs.

Detailed explanation-5: -The main objective of managerial accounting is to maximize profit and minimize losses. It is concerned with the presentation of data to predict inconsistencies in finances that help managers make important decisions. Its scope is quite vast and includes several business operations.