Difference Between Cost Accounting and Financial AccountingWhat is Cost AccountingCost Accounting is defined as a field of accounting which is used periodically to report, record and summarize the cost information. In other words, we can define cost accounting as the branch of accounting that is concerned with the costs of producing an organization's units. The main role of cost accounting is to identify and control costs. With cost accounting, the users with the cost data can decide the selling price determination, labor efficiency measurement, project plans and actions, controlling costs, etc. Cost accounting contributes to the effectiveness of financial accounting by offering relevant information, which is eventually the result of the organization's good decision-making process.
Integrated Accounting System: - In integrated accounting system, cost and financial data are stored in one book. Non-Integrated Accounting System: - In this type of accounting system, separate set of books is maintained for cost information. What is Financial AccountingFinancial accounting is a field of accounting that deals with the recording, reporting, and summary of financial transactions occurring in a business concern over a time period. In other words, financial accounting is defined as the accounting involved in the recording of an organization's financial data in order to show the exact position of the company. The main motive or the objective of financial accounting is to prepare the financial statements for a specific accounting period of an entity in a definite way. It contains the Income Statement, Cash Flow Statement, and Balance Sheet that helps to track an organization's performance, profitability and financial status over a period of time. Difference Between Cost Accounting and Financial Accounting
Next TopicDifference between
|