What is meant by Cost Accounting? How it is different from
Financial Accounting?
- 6 Answers
- 17563 Views
- AV Vision, Deloitte, DigiCall, Parco, TATA, I also Faced
- E-Mail Answers
Answer Posted / zubairafzal
FINANCIAL ACCOUNTING
Financial accounting is concerned with preparation of
financial statements for decision makers, such as
stockholders, suppliers, banks, government agencies,
owners, and other stakeholders.
Financial accounting is one branch of accounting and
historically has involved processes by which financial
information about a business is recorded, classified,
summarised, interpreted, and communicated; for public
companies, this information is generally publicly-
accessible. By contrast management accounting information
is used within an organisation and is usually confidential
and accessible only to a small group, mostly decision-
makers. Tax Accounting is the accounting needed to comply
with jurisdictional tax regulations
It is used for the external users such as the investors,
shareholders etc.
Financial accouts shows the profit and loss and balance
sheet made during an accounting period, and also financial
position of the business as on a particular date.
COST ACCOUNTING
Cost accounting on the other hand is the process of
tracking, recording and analyzing costs associated with the
products or activities of an organization. Usually used in
manufacturing, service and companies where the focus is in
costs...
Costs are measured in units of nominal currency by
convention. Cost accounting can be viewed as translating
the Supply Chain (the series of events in the production
process that, in concert, result in a product) into
financial values.
It is used for the internal use for the estimation of the
cost of a product or project.
Cost is the amount of the expenditure. In cost accounting
we can find cost of goods and services. cost accouting
provides the management detailed information regarding cost
of each product, services etc.
| Is This Answer Correct ? | 39 Yes | 1 No |
Post New Answer View All Answers
Who is the maker of the promissory note
Anyone whose sbi interview has been over , please share all the question asked by them
what is the meaning of input vat & out put vat?
how to prepare mba finance for interview questions
what is organic profit? and how it is calculated?
hey! i have an interview for PO in union bank on 11th feb. can anyone please tell me what major topics should i prepare for? of course npa is there. also cibil and basel basics. is there anything else i should prepare?
What is finance lease
How Many Types of Excise Duties?
explain about mergers & aquisitions? asked on 30/7/09
what are the importance accounting entries for AP and AR process in interview..
Short Answer on _____________Accident Insurance
Sir,I want to be good in accounting .Now i have got an oppurtunity to work in accounts department but i am average in accounts.So how can i improve and work with effiency guide me with ur tips.
Expand---------BPCD
When is proposed divided a current Liability and when is it non-current liability? Why is it in the list of Current Capital Accounts?
what are the accounting ratios
