In summary, financial accounting involves the systematic record of the transactions of a business or organization in the individual books of accounts which are maintained by the business for the preparation of financial statements. The two financial statements prepared by the organization are the profit and loss account and balance sheet. Meaning of Cost Accounting-Cost Accountancy means and includes the principles, conventions, techniques and systems which are employed in a business to plan and control the utilization of its resources. It is defined by CIMA as the application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and the ascertainment of profitability. It includes the presentation of information derived therefrom for the purposes of managerial decision-making. Accountants have their salary increased almost every year due to the nature of their work and their relevance to organizations and businesses.
Management is skillful and personal application of existing knowledge to achievedesired results. Scientific methods of observation Certain management principles are evolved from scientific methods of observation. The cause and effect relationship is the art of science but it is applicable in management also. Therefore, management principles are accurate and reliable. It is a science because it represents a systematic body of knowledge is based on a set of principles. It is also an art because it involves practical work in which one can fully exercise judgment. This purpose is served by preparing the balance sheet that facilitates in ascertaining the true financial position of the business.
GSEB Solutions Class 11 Accounts Part 1 Chapter 1 Accounting and its Terminology
Thus, management is an art because it satisfies all the characteristics of an art. Like any other art, a manager, after studying various situations, formulate his own theories for use in given situation. A manager applies his acquired knowledge in a personalised and skillful manner in the light ofthe realities of a given situation. He is involved in the activities of the organisation, studies critical situations and apply his own theories in a given situation. Principles based on observation and experimentation Like science, management principles are derived through observation and repeated experimentation. Management as a Science Science is the systematised body of knowledge which establishes the relationship between causes and their effects. This gyankovandar.com website is a free online educational website portal.
FAQs on Management as an Art, Science and Profession
Comparisons may also be made with average figures for the whole industry and with ideal figures which may have been determined beforehand. Abhipedia , 360 degree exam Preparation platform is a product of 22 years of Experience of Abhimanu Expert Sh Parveen Bansal, caters to learning needs of students. However, in accounting the relationship of cause and effect is not discussed which is a basic feature of pure science.
This benefits society at large but doesn’t necessarily bring profits for the lender. When finance is used to generate positive social or environmental impact, and not dj gmix in primarily for a profit-making purpose, it comes under the umbrella of social finance. Public finance helps governments allocate resources, and tailor fiscal policy.
Nevertheless, some basic views of marketing which couldn’t be avoided have found a place in the article. Accountants can start their businesses since they are trained in the management of businesses and organizations. Some accountants choose to start their firms after their studies. Due to the broad knowledge, they gain in studies, they can start businesses on their own and make it work. However, the principles of management are not as exact as the principles of Physics or Chemistry. Management principles are flexible and can be modified to suit different situations. Thus, management can be called as an inexact science also.