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accounting, primarily aims at meeting the  extends far beyond manufacturing,
           information needs of external stakeholders  permeating through the fabric of modern
           of a business. While, financial accounting  organisational frameworks, where its
           it is not strictly guided by accounting  analytical insights play a pivotal role in
           standards (e.g., IFRS) but a variety of    fostering efficiency, profitability, and
           cost accounting principles. It is mainly used   strategic growth.
          FOR ONLINE READING ONLY
           by managements of the organisations to     Management accounting: It works
           achieve the objectives of controlling and   closely with cost accounting, uses many of
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           reducing of costs in the production of  the same methods and techniques to process
           goods and services. In other words, cost  data. But it is even broader because it looks
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           accounting information is generally meant  at more types of data, and how they are used.
           for management consumption that is internal  Besides just money stuff, like how much a
           use of accounting information.             company spends, management accounting
           Cost accounting: In its nascent stages,    also thinks about other important things
           was predominantly moulded to be utilised   like how well its marketing is working
           within manufacturing enterprises. Initially   and how happy its employees are. Unlike
           conceived to meticulously document and     cost accounting, which has strict rules to
           dissect manufacturing expenditures, its    follow, management accounting makes
           principal aim resided in delineating the   companies be more flexible when they make
           precise costs associated with the creation of   reports, like budgets and other important
           products. However, as business landscapes   documents. These reports are made to fit
           evolved, the purview of cost accounting    what the managers need, and they can
           transcended its traditional confines       be done in different ways as long as they
           and found applicability across diverse     are good quality. This is different from
           organisational domains,  encompassing      financial accounting, where reports have
           service-oriented establishments as well.   to follow specific rules and principles set
           This evolution reflects a paradigm shift in   by accounting standards.
           the conceptualisation of cost accounting,  Recently, there are new types of accounting
           transitioning from its previous role solely  that have emerged, alongside the other
           within the manufacturing sphere to a more  types mentioned earlier. These include tax
           expansive role catering to the intricacies of  accounting, forensic accounting, and social
           various service-providing entities. Today,  responsibility accounting.
           cost accounting serves as an indispensable
           tool for elucidating the financial intricacies   Activity 1.1
           inherent in service-based operations,       Read from various sources including
           enabling organisations to ascertain the true   online sources on the meaning and
           cost structures underpinning their services   importance of tax accounting, forensic
           and facilitating informed decision-making   accounting, and social responsibility
           processes. Thus, its contemporary relevance   accounting.

            Student’s Book Form Five
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