Essays --

ACCOUNTING UNIT 3Explain the difference between fiscal and caution accounting, the bedrock of management accounting. Explain how be are classified using examples.Accounting is a systematic process or work that identifies, records, reports and analyses pecuniary transactions and instruction of a business. It allows a company to analyse the financial performance of a business and reveals profit or loss for a certain accomplishment of time and the value of assets, liabilities and owners equity. Thus, its purpose is to provide information needed for finale making. However, there are two types of accounting. In this essay I am going to explain the differences between financial and management accounting including what fundamentals of accounting management are as well as the potpourri of various costs in accounting.Financial accounting is specialised to snub a companys financial transactions which are recorded, summarised and presented in a financial report or statements such as poise sheets, income statements, statements of cash flows and statements of owners equity. These statements are annual basis and considered impertinent as they are given to people or stakeholders outside of a company. The audience of financial accounting reports are stakeholders or owners, lenders, board of directors and financial institutions, which are known as the primary recipients. Financial accounting enables them to retrieve how the company has performed in the past. Once a companys course is publicly traded, its financial statements exit be spread and the information will reach secondary recipients. They are competitors, employees, labour organisations, customers and investment analysts.The purpose of financial accounting is to provide e... ...f product. Examples of this type of costs are wood, electricity for factory, proceeds workers wages, and so on. The indirect cost is the cost that cannot be easily and conveniently traced to a unit of product. This includes manu facturing overhead, rent, admin staff wages and so on.According to the behaviour, costs classify as fixed and variable. Fixed costs are the ones which anticipate constant or unaffected within a certain take aim of output or sales. Examples of fixed costs are rent, insurance, depreciation of building, managers requital etc., which remain constant even though a large cast of units are produced. On the other hand, variable costs vary in direct proportion to the output. It can increase or decrease base on the production unit. Examples of variable cost are electricity for factory, materials employ to manufacture a product, wages of workers and so on.