Presentation

on
Branches of Accounting
BY
N. DURGA CHAITANYA PRASAD
Research Scholar, SOM

ational Institute of Technology, Waranga

WHAT IS ACCOUNTING
Thesystematicrecording, reporting, and
analysis of financial transactions of a business.

Thepersonin charge of accounting is known as

anaccountant, and this individual is typically
required to follow a set of rules and regulations,
such as theGenerally Accepted Accounting
Principles.

BRANCHES OF
ACCOUNTING

FINANCIAL ACCOUNTING
Financial accounting involves recording and
classifying
business
transactions,
and
preparing and presenting financial statements
to be used byinternal and external users.
In the preparation of financial statements,
strict compliance withgenerally accepted
accounting principlesor GAAP is observed.
Financial accounting is primarily concerned
in processinghistoricaldata.
Objectives of Financial Accounting:
Maintenance of Records of Business
transactions
Calculation of Profit or Loss
Processing of Financial Position
Provide Information to the Parties

FINANCIAL ACCOUNTING USERS

COST ACCOUNTING
The terms costing and cost accounting are
often used interchangeably.
Costing is the techniques and processes of
ascertaining cost.
Cost consists of principles and rules which
are used for determining:
1. The cost of manufacturing a product;
e.g., motor
car, furniture, chemical, steel,
paper,
etc.
and
2. The cost of providing a service; e.g.,
electricity,
transport, education, etc.
Cost Accounting Standards are mainly for
internal use i.e. management. It is not to be
provided to external parties

COST ACCOUNTING
Cost accounting refers to the recording,
presentation, and analysis ofmanufacturing
costs
It includes the ascertainment of the cost of
every order, job, contract, process, service or
unit as may be appropriate.
In any manufacturing concern, it is
necessary to keep the records of daily stocks
in hand, their issues and receipts, payment of
wages,
calculated
regarding
overhead
charges, fixing the sale-price of the products,
to prepare the budget and thereby to help in
cost control etc.
Cost
accountants
analyze
actual
and
standard costs to help managers determine

OBJECTIVES OF COST ACCOUNTING

Ascertainment of Cost:(ascertain cost of
each

product,

process,

job,

operation

or

service rendered)
Ascertainment of Profitability(it determines
the profitability of each product, process, job,
operation or service rendered.)
Classification

of

Cost:(Material,

Expenses)
Control of Cost:
Fixation or Selling Prices:

Labour,

Management Accounting
It is a branch of accounting provides
information
to
management
for
better
administration of the business.
It helps in taking decisions efficiently with the
help of various Management Information
Systems such as Budgets, Cash Flow and Fund
Flow Statements, Variance Analysis reports,
Cost-Volume-Profit Analysis reports, BreakEven-Point calculation, Capital Budgeting,
Working Capital Management etc.
Management accounting is concerned with
accounting information that is useful in
management

Management Accounting

Management Accounting
Management accounting is an essential part
of an organization concerned with presenting,
identifying and interpreting data used for:
Formulating strategy
Planning and controlling activities
Decision-making
Optimizing the use of resources
Disclosure to shareholders and employees
Safeguarding assets.