Cost classification will go over some of the classification methods used in managerial accounting. It is often useful to classify cost by behavior because this helps us generate projections. The two major classifications of costs by behavior are fixed costs and variable costs. Fixed costs do not increase as production increases. Rent is a good… Continue reading Cost Classifications – Managerial Accounting- Fixed Costs Variable Costs Direct & Indirect Costs
Tag: Managerial Accounting
Categories of Accounting – Financial Accounting & Managerial Accounting
Accounting is divided into two major groups; Financial Accounting & Managerial Accounting. Financial Accounting – What Needs To Be Known Financial accounting has the end goal of generating financial statements, financial statements designed with external user needs in mind. The aim of financial accounting toward external users may seem strange at first because financial data… Continue reading Categories of Accounting – Financial Accounting & Managerial Accounting