Accounting

Accounting systems bear the responsibility of producing information for both inside and outside the firm in terms of their respective fields. Accounting systems are generally divided into two as management (cost) and financial accounting.

Managerial accounting carries the obligation of company managers to produce and report the financial information required to achieve the company's main objectives. Therefore, it is directly related to the first four of the above-mentioned issues. Cost accounting is the most important part of management accounting. Cost accounting reflects the information about the supply and use of the company's resources. In this respect, it generates information for both management and financial accounting. Management and cost accounting provides information to managers in the management and coordination of all functions that make up the value chain.

Financial accounting, on the other hand, carries the reporting obligation of generally accepted accounting principles. Therefore, it concerns the fifth of the above-mentioned issues.

Financial accounting has to use generally accepted accounting principles for its measurements and reporting. In contrast, since management and cost accounting is mostly internal, it need not be limited to generally accepted principles.