Cost accounting serves as a bridge between financial and managerial accounting.

Question

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Cost accounting provides information to both financial accounting and managerial accounting. It helps financial accounting by providing accurate cost data for determining the cost of goods sold and inventory valuation. It helps managerial accounting by providing information for decision-making, such as measuring and analyzing costs, profitability, and performance. Thus, it serves as a bridge between financial and managerial accounting.

Cost Accounting Serves as a Bridge Between Financial and Managerial