What Is The Difference Between Financial Accounting And Cost Accounting?

Question

What Is The Difference Between Financial Accounting And Cost Accounting?

5 Answers

Answer Question

Answer 1

1. Financial Accounting provides information to external users, whereas Cost Accounting provides information to internal users.2. Financial Accounting produces general purpose financial statement, whereas Cost Accounting produces special purpose statements and reports.3. Financial Accounting must conform to generally accepted accounting principles, whereas Cost Accounting must conform to information needs of management.4. Financial Accounting provides accounting data in monetary terms, whereas Cost Accounting provides accounting data in monetary and non-monetary terms.5. Financial accounting regarding financial statements are prepared on Yearly, or Half Yearly basis, whereas Cost Accounting regarding cost statements and reports are prepared more frequently, i.e: Weekly and daily basis.

Answer 2

Anonymous answered

Distinguished between cost accounting and financial accounting

Answer 3

Ane is about organizing events and the other is calculating the budget

Answer 4

Financial accounting purpose is to enable management to render account of its stewardship

Answer 5

Financial Accounting is accounting related to the income and expenditures of a company as well as it's financing and capitalization transactions on a historical and current basis. Cost accounting relates to accounting for and the distribution of the cost of producing a product or item for sale and it allocated overhead, labor, utilities and related cost to production based on the need to produce on a by unit basis the item being manufactured for sale. This is to match the costs with the production of an item or matching the costs to the item. Since electricity for example can be purchased cheaper in some instances these costs need to be known to reduce the overhead of production.