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Cost accounting definition

Accounting Tools

Related Courses Cost Accounting Fundamentals Financial Analysis What is Cost Accounting? Cost accounting examines the cost structure of a business. None of these tools are used by financial accountants, who are more concerned with the production of financial statements.

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Relevant cost definition

Accounting Tools

This concept is only applicable to management accounting activities; it is is not used in financial accounting , since no spending decisions are involved in the preparation of financial statements.

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The impetus behind that was that rightly so they believe that management accounting was a distinct profession from public accounting and that the competencies needed inside organizations were different from public accounting. There was quite a bit of overlap.