Question

__________ includes financial and cost accounting, tax planning, and tax accounting.

• A. Financial accounting
• B. Cost accounting
• C. Management accounting
• D. None of these

Answer 1

Answer: (C)

Management accounting

Accounting has three main branches i.e financial accounting, cost accounting and management accounting. Financial accounting helps in recording and processing of all transactions while cost accounting helps in ascertaining the cost of each product.

Management Accounting is a combination of both. It has an objective of collecting systematically and regularly all such information as will help the management in discharging functions in managerial decision making.