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Cost accounting provides detailed insights into costs associated with products and services, aiding in decision-making for efficiency and pricing. It differs from financial accounting by focusing on internal management needs rather than external reporting. Ethical behavior in accounting is crucial for maintaining trust, attracting investors, and ensuring long-term profitability.
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0% found this document useful (0 votes)
9 views3 pagesCostacc Assignment1
Cost accounting provides detailed insights into costs associated with products and services, aiding in decision-making for efficiency and pricing. It differs from financial accounting by focusing on internal management needs rather than external reporting. Ethical behavior in accounting is crucial for maintaining trust, attracting investors, and ensuring long-term profitability.
Uploaded by
syramaebillones26Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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AC9-Cost Accounting and Control
ASSIGNMENT
1. What information does cost accounting provide?
Cost accounting provides precise information about the costs connected with
various products, services, and operations. And this data enables them to
pinpoint areas within the business that need to be improved and make
informed decisions about cost-cutting and efficiency solutions. Furthermore,
cost accounting assists in pricing products and services to maintain
profitability while keeping competitive. Cost accounting is also important for
planning and forecasting since it gives precise data on previous costs and
trends, allowing firms to prepare for the future. It also aids in the evaluation of
different departments' and employees' performance by providing statistics on
cost and efficiency measures.
2. Distinguish between management accounting and financial accounting?
Financial Accounting Management Accounting
● Helps external parties makes ● Assists internal parties in the
decisions like credit terms, planning and control
investments and others decision-making process
● Pertains to company as a whole ● Pertains to departments and
● Quarterly; annually sections of the business
● Makes financial statements like ● As frequently as needed
balance sheet, income ● They do the internal reports
statement, cash flow like job cost sheet, cog
statement, etc. manufactured, production cost
● Audited by CPA report, etc.
● No independent audits
4. Explain the meaning of cost management
The process of estimating, assigning, and controlling project expenditures or
costs is known as cost management. The cost management method enables a
company to forecast future expenses and therefore limit the likelihood of
budget overruns. Cost estimates are developed during the project planning
process and must be authorized before work begins. Expenses are documented
and tracked while the project plan is carried out, ensuring that teams stay
within the budget. When the project is finished, the expected and actual costs
are compared, giving benchmarks for future cost management plans and
project budgets.
6. Where does the cost management accounting function fit into an organization’s
structure?
I think the cost management accounting is part of the controller in an
organization’s structure.
7. What do management accountants perform?
Management accountants frequently oversee lower-level accountants who
perform fundamental accounting duties including keeping track of tax
liabilities and recording income and expenses. The analysis that management
accountants provide helps senior management make operational decisions by
forecasting, budgeting, and measuring performance and plans. A management
accountant may also evaluate and manage risk, plan for funding and financing
operations, spot trends and possibilities for improvement, and monitor and
enforce compliance. They may also design, manage, and monitor the
bookkeepers and data processors for a company's financial system. Budgeting
or taxes could be an area of specialization for management accountants.
8. What are the ethical responsibilities of accountants?
Competence-Accountants have a continual obligation to keep their
professional knowledge and expertise at the level necessary to guarantee that
clients or employers obtain competent professional services based on recent
advancements in theory, law, and methodology.
Confidentiality-Unless there is a legal or professional obligation to reveal, an
accountant should preserve the confidentiality of information obtained
through professional and business connections and avoid disclosing any such
information to third parties without adequate and specific authorization.
Integrity-Accounts should always be honest and straightforward in all
business-related and professional interactions.
Objectivity-Bias, conflicts of interest, and improper influence of others should
not be tolerated by accountants.
16. Why is ethical behavior important to business?
By upholding a high ethical standard, businesses can improve the internal
competitiveness of their CEOs, management teams, and workforce.
Additionally, companies that respect their own standards of moral conduct
might attract and keep investors. In other words, through supporting business
ethics, a company can build its reputation and financial success over time.
Employees that work for a company with high business ethics are confident
that irregularities are not tolerated because of their own behavior. Business
ethics is important for more than just employee loyalty and morale or the
strength of a management team's bond. As with all commercial operations, an
organization's moral behavior is intimately tied to its short and long-term
profitability. The reputation of a company in the surrounding community,
among other businesses, and among individual investors is critical in
assessing if it is a good investment. Investors are less likely to acquire stocks or
support a company's activities if it is regarded to be unethical.