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Task
Explain the relationship of cost accounting to financial and managerial accounting.
Accounting can be defined as 'the process of identifying, measuring, and communicating economic information to permit informed judgments and decisions by users of the information.
There is a second side to accounting. This one is generally forward-looking and capable of being used to aid managerial control, forecasting and planning. It consists of following two components:
1. One where costs are recorded, and
2. The other where the data is processed and converted into reports for managers and other decision makers.
In relation to the above context name the two components explained in point 1 and 2 and explain the relation of cost accounting to Financial and Management Accounting and how it helps management in decision making.
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