VII.

USERS AND USES OF COST ACCOUNTING INFO

COST ACCOUNTING SYSTEM

(ACCUMULATES COST INFO)

CHARACTERISTICS FINANCIAL ACCOUNTING MANAGERIAL ACCOUNTING

USERS  External parties Internal parties (Managers)
(Shareholders,
Creditors,
Governments)
 managers
FOCUS Entire business Segments of the business
USES OF COST INFO Product costs of Calculating  Budgeting
COGS (IS) and finished goods,  Special decisions such
Work in Process, and Raw as Make or buy a
Materials Inventories (BS) components, keep or
using historical costs and GAAP replace a facility, and
sells a product at a
special price.
 Nonfan info such as
defect rates,
percentage of
products returned,
and percentage of on-
time deliveries (All of
the above using a
combination of
historical data,
estimates, and future
projections