Branches of Accounting

Accounting is the language of business which spreading into main three branches, Financial Accounting, Cost Accounting and Managerial Accounting.There differences are discussed in this info-graphic, you will definitely find it helpful.

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FINANCIAL ACCOUNTING

deals with the financial information based on historical/ past activities of the firm.Its primary objective is to summarized the monetary information of firm in the form of Financial statements which shows the financial performance and financial position of the firm that is basically presented to the external users of firm's information.

COST ACCOUNTING

is that branch of accounting which is primarily concerned with the determination of cost of a single unit or service. It mainly dealt with inventory valuation that means determining the cost of every type of inventory whether its Raw material inventory, Finished goods inventory, work in process inventory or merchandise inventory, it helps in measuring the profits and building balance sheet. Cost accounting is also involve in planning the allocation, saving costs i.e. part of controlling and also helps in decision making.

MANAGERIAL ACCOUNTING

Managerial accounting based upon the information provided by cost accounting but its scope is wider than cost accounting it uses advance techniques and monetary and non-monetary information for making decisions.