Name: Mae O. Tanaman
What is Pricing and Costing?
Cost is typically the expense incurred for creating a product or service a company sells. The cost to
manufacture a product might include the cost of raw materials used. The amount of cost that goes
into producing a product can directly impact its price and profit earned from each sale. While price
is the amount a customer is willing to pay for a product or service. The difference between
price paid and costs incurred is profit. If a customer pays Php 1000 for a product that costs Php
600 to make and sell, the company earns Php 400 in profit.
Differentiate Managerial accounting and Cost Accounting
Cost accounting helps lower costs prevent businesses from exceeding the budget, and helps
increase efficiency. While management accounting provides a bigger financial picture, historical
data, and future financial projects that inform decision-making and strengthen business strategy.
Cost accounting only deals with costs. While management accounting analyzes every aspect of the
business, including costs. Since management accounting encompasses all aspects of the
business's financials, cost accounting is actually a subset of management accounting. As a result,
successful management accounting depends on accurate cost accounting. However, your
company's management accounting procedures have no effect on the success of your cost
accounting processes.
Cost accounting uses cost reports to record and report the total costs of operating. This differs
from the reports used in management accounting which includes reports like cash flow forecasts
and profit and loss statements by class. Although the reports differ, cost accounting reports are
necessary for management accounting to generate profit and loss statements by class, identify
business drivers, and support data-based decision-making.
Do you have experienced In Handling Accounting System or Finances, Yes or No,
Why?
I have an experience in handling finances and accounting system in our business. In our business I
have been very hands on on the financial side of our business. I get to monitor the expenses,
income and profit of our small business. I was able to keep track on the money coming in and out of
our business bank accounts.
Do you have a Desire to be an Accountant Someday?
To be fairly honest, I don’t dream of being an accountant someday. But I wanted to be someone
who’s knowledgeable enough in an accounting aspect of a business. I wanted my knowledge to
grow and improve so I can apply it on our family business.