Cost CH-1
Cost CH-1
INTRODUCTION
► Objectivity and verifiability of data are emphasized. ► Relevance of items relating to decision making is emphasized.
► Only summarized data for the entire organization is prepared. ► Detailed segment reports about departments, products,
customers, and employees are prepared.
► Produces general purpose reports to its users. ► Provides special purpose reports to managers.
► Must follow Generally Accepted Accounting Principles (GAAP). ► Need not follow Generally Accepted Accounting Principles
(GAAP).
► It is Mandatory for firms to prepare and publish external reports in ► Not mandatory to prepare and publish managerial accounting
the form of financial statements. reports.
► It describes the performance of the business over a specific ► It can be prepared for any period (for daily, weekly, monthly,
period referred to as “Accounting Period”. Usually covers one quarterly or annually) to help management.
quarter or one year.
► Reports should keep specific formats by different government ► No specific formats are required to prepare managerial
regulatory agencies. E.g. Tax authorities. accounting reports.
► Verification of the accuracy of financial statements through an ► Internal reports of managerial accounting are not subject to
audit procedure is must. auditing.
Role of Management
Accountants in an Organization
• Scorekeeping- accumulating data
and reporting reliable results to all
levels of management.
• THANK YOU.