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FAQs on PPT: Introduction to Cost and Management Accounting - Cost and Management Accounting for CA Intermediate

1. What is the difference between cost accounting and management accounting?
Ans. Cost accounting primarily focuses on the recording and analysis of costs, while management accounting involves utilizing financial information for decision-making and strategic planning.
2. How does cost accounting help in controlling costs?
Ans. Cost accounting helps in controlling costs by identifying areas where costs can be reduced, analyzing cost behavior, and implementing cost control measures based on the analysis.
3. What are the different methods of cost accounting?
Ans. Some common methods of cost accounting include job costing, process costing, activity-based costing, and standard costing.
4. How does management accounting contribute to the overall success of an organization?
Ans. Management accounting provides valuable insights into the financial performance of an organization, helps in setting realistic budgets and goals, and aids in making informed business decisions.
5. How can cost and management accounting be used to improve profitability?
Ans. By analyzing cost structures, identifying cost drivers, and implementing cost-saving measures, cost and management accounting can help improve profitability by increasing revenue and reducing expenses.

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