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Management Accounting

Management Accounting Institute of Chartered Accountants of England and Wales defines management accounting as: Any form of accounting which enables a business to conduct more efficiently can be regarded as Management Accounting. American Accounting Association defines management accounting as: Management Accounting includes the methods and concepts necessary for effective planning, for choosing among alternative business […]

Concepts of Cost Accounting

Concepts of Cost Accounting Following are the main concepts of cost accounting: Cost There is a cost involved to purchase or produce anything. Costs may be different for the same product, depending upon the stages of completion. The cost changes according to the stage a product is in, for example, raw material, work in progress, […]

Accounting Conventions

Accounting Conventions Convention of Consistency To compare the results of different years, it is necessary that accounting rules, principles, conventions and accounting concepts for similar transactions are followed consistently and continuously. Reliability of financial statements may be lost, if frequent changes are observed in accounting treatment. For example, if a firm chooses cost or market […]