Essays --

ACCOUNTING UNIT 3Explain the remainder between monetary and commission accounting, the fundamentals of management accounting. Explain how be ar classified using examples.Accounting is a systematic go or work that identifies, records, reports and analyses pecuniary transactions and information of a business. It allows a federation to analyse the monetary performance of a business and reveals honour or loss for a certain period of time and the value of assets, liabilities and proprietors equity. Thus, its purpose is to bequeath information needed for decision making. However, there ar two types of accounting. In this essay I am going to explicate the differences between financial and management accounting including what fundamentals of accounting management are as well as the classification of various be in accounting.Financial accounting is specialised to track a companys financial transactions which are recorded, summarised and presented in a financial report or stat ements such as balance sheets, income statements, statements of cash flows and statements of owners equity. These statements are annual basis and considered external 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 cognise as the primary recipients. Financial accounting enables them to see how the company has performed in the past. Once a companys stock is publicly traded, its financial statements will be spread and the information will reach standby 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, take workers wages, and so on. The confirming cost is the cost that cannot be easily and conveniently traced to a whole of product. This includes manufacturing overhead, rent, admin staff wages and so on.According to the behaviour, costs classify as fixed and variable. Fixed costs are the ones which remain invariant or unaffected within a certain level of output or sales. Examples of fixed costs are rent, insurance, depreciation of building, managers salary etc., which remain constant even though a large number of units are produced. On the other hand, variable costs vary in direct affinity to the output. It can increase or decrease based on the production unit. Examples of variable cost are electricity for factory, materials used to manufacture a product, wages of workers and so on.