Management Accounting is the application of professional knowledge and skill in the preparation and presentation of accounting information, in such a way as to assist management in the formulation of policies and in the planning and control of the operation of the undertaking.
Cost accounting is the application of accounting and costing principles, methods and techniques in the ascertainment of cost and the analysis of saving and /or excesses as compared with previous experience or with standards. It is this link i.e., the subject matter of this project. Costing and costing method supply the basis of factual information on which the management accountant can built up his presentation of planning and control. In this project, I will first look into the following cost items:
a) Expenditure on material, wages, and overhead is recorded, classified and allocated so that the cost of product may be accurately ascertained.
b) This cost may be related to sales values.
c) Profitability may be determined.
The accounting system col...