Briefly Discuss the Relationship Between Cost Accounting, Management Accounting, and Cost

question 89

Essay

Briefly discuss the relationship between cost accounting, management accounting, and cost management.

---

Definitions:

Direct Materials

Raw materials directly used in the manufacturing of a product, directly traceable to the finished product.

Office Supplies

Items like pens, paper, calculators, and computers that are used on a daily basis within an office setting.

Permanent/Temporary

Refers to accounts in accounting: permanent accounts are balance sheet accounts that carry over into the next accounting period, while temporary accounts are income statement accounts closed at the end of the accounting period.

Financial Statement

A written record that quantitatively describes the financial health of a company, including income statement, balance sheet, and cash flow statement among others.