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Difference Between Cost Accounting, Financial Accounting And Managerial Accounting?

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Cost accounting is used for managerial decision making, how much cost is spent in all production as well as admin department. What amount of budget is required in future and all receipt forecasting.

Financial accounting is used for reporting of financial information to people outside of the business, e.g. Shareholders, creditors, or financial analysts. The reports consist of financial statements, including the balance sheet, income statement, statement of capital, and cash flow statement.

Managerial accounting is used to produce internal financial reports and analysis prepared in such a way to assist managers in making decisions (such as expense reduction, capital investment, etc.).

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