Accounting is the methodical and full recording of financial transactions relating to a business, and it also denotes to the procedure of briefing, examining and evaluating these transactions to cross checking agencies and tax collection agencies. Accounting is one of the key purposes for nearly any company. It may be done by an auditor and accountant at small businesses or by substantial finance subdivisions with lots of employee’s at
Managerial accounting provides essential data about the functions within the business. The reports that are provided by the managerial accountants focus on the performance of the business and the business environment. Managerial accounting is manager oriented and managerial accounting focus on the accounting duties of a manager. Managerial accounting is used on a day to day operation providing an analysis of cost and the cost benefits. Managerial accounting function as a source for the business developments and the capital budgeting. The primary concern with managerial accounting is to provide positive outcomes in the business production and the profit.
1) Book-keeping is the art of keeping and maintain accounts in the prescribed manner whereas accounting is mainly concerned with the design of the system of records, preparation of reports based on the recorded data , and interpretation of the reports.
Accounting is a business discipline that allows companies to record, analyze, and retrieve critical financial information that can be used to determine a company 's financial status. Its purpose is to help people understand what is going on financially within an organization provide reports and insights needed to make sound financial decisions.
Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities besides preparing financial statements and recording business transactions. These activities include computing costs and efficiency gains from new technologies, participating in strategies for mergers and acquisitions, quality management, developing and using information systems to track financial
Accounting 22. A technique that establishes the rules and procedures to record, quantify, analyze and interpret economic events affecting the heritage of any economic organization or entity providing information useful, reliable, timely, and accurate which aims to ensure financial control.
Record-keeping and book-keeping is the disciplined and orderly practice of storing financial loss, gain, producing invoices, depositing incoming cash and checks, tracking donations and work purchased items. Business
A direct cost can be traced to a product or service which includes: Direct labor- which is the cost of the labor that’s directly connected to a product or services. Direct labor is sometimes called touch labor, since direct labor workers typically touch the product while it is being made.( Ray H. Garrison, Eric W. Noreen and Peter C. Brewer p 39-40) An example of direct labor is an assembly line worker. Labor cost that cannot be physically traced to the creation of products, or that can be traced only at great cost and inconvenience, are considered to be indirect labot.( Ray H. Garrison, Eric W. Noreen and Peter C. Brewer p 40) Direct material are those materials that become an integral part of the finished product and whose cost can be traced to the finished product.( Ray H. Garrison, Eric W. Noreen and Peter C. Brewer p39-40) Manufacturing overhead is the third element so manufacturing cost, it includes all costs of manufacturing except direct materials and direct labor. Manufacturing overhead includes items such as indirect materials; indirect labor; maintenance and repairs on production equipment; and heat and light, property taxes, depreciation, and insurance on manufacturing facilities. Only cost associated with operating the factory are consider to be manufacturing overhead cost. A company also incurs other costs associated with its selling administive functions, but these costs are not included as part of manufacturing overhead. Only those
Manufacturing overhead (also known as factory overhead, factory burden, production overhead) involves a company 's factory operation. It includes the costs incurred in the factory other than the costs of direct materials and direct labor. This is the reason that manufacturing overhead is often classified as an indirect cost. The general professional accounted has accepted accounting principles require that cost of direct material cost, direct labor, and manufacturing overhead be considered as the costs of products for valuing inventory and for determining the cost of creating these shoes. An example, of manufacturing overhead include the depreciation or the rent on the factory building, depreciation on the factory equipment, supervisors in the factory, the factory quality control department, factory maintenance employees, electricity and gas for the factory, indirect factory supplies.
The main aspects of the accounting function is recording, reporting and analyse of financial transactions within a business. The business transaction takes place as a sale, purchase or payment of an expense which is a record of transaction in the organisation's accounting records and this is entered in the book of prime entry. The accounting function involves financial accounting including maintaining books and records and preparing accounts. Management accounting involves appraisal budgeting and treasury which involves cash management and tax affairs. Auditing involves reviewing financial reports and internal
Accounting is the analysis of a company’s liabilities, assets and equity. Accountants must accurately create financial statements such as balance sheets and income statements. Financial statements are a record of all financial activities for the business. They are viewed by both outsiders and insiders, and are the blueprint for how the company is doing financially. It is very important that financial statements are accurate for many reasons. Outsiders include the Internal Revenue Service, shareholders and investors. The IRS requires that these financial statements are in ordnance of the Generally Accepted Accounting Principal, or GAAP. Failure to do so will result in a heavy fine and possible jail time. Investors want an idea of how financially sound a company is before they invest. Insiders, including management and owners, use these
According to an accounting textbook, cost is defined as a resource sacrificed or foregone to achieve a specific objective. It is something given up in exchange. It is necessary for project managers to understand project cost management since project costs money and consumes resources.
Accounting can be defined in a number of ways, but I chose the book definition, which is; Accounting is an information system that provides reports to stakeholders about the economic activities and condition of business. The person in charge of accounting is called the accountant. The accountant is typically required to follow a set of rules and regulations. These rules and regulations are called the General Accepted Accounting Principles. Throughout these next few paragraphs, I will be giving you the history and evolution of accounting, and I will be explaining who the stakeholders are and what type of information they require, and I will be explaining the role of accounting in business. There will be many examples and type of business