Economists are interested in the affairs of industries or nations. Accountants (cost accountants) are interested only in the affairs of individual firms. Economists may macro and micro. New techniques of economic analysis with special reference to business decision have been developed. Accountants are also concerned with opportunity cost, marginal cost, differential cost etc, which are some of the subject matter of the economics. Economists and accountants both use mathematical tools of analysis like operation research with different techniques help any individual firm or government in making decisions as to the best allocation of resources.
It is a fact that economist and accountants work in different dimension. Economists rely in many cases on the information supplied by accountants. Economist now a days are becoming more and more interested in topics of accounting.
A concept of profit advocated by economists widely differs from that advocated by accountants.
Accountants’ value fixed assets at historical cost less depreciation. Accountants do not have any objection to the economists view that asset have value only when they contribute to the future income. So, assets may be revalued so that they can represent their true worth.
No comments:
Post a Comment