Answer / Sumit Chansouliya

Cost Accounting is a management accounting tool that focuses on cost determination, analysis, and allocation for internal decision-making purposes. It aims to provide cost information to managers for better control and improvement of operational efficiency. On the other hand, Financial Accounting provides financial information to external users, such as shareholders, creditors, and government agencies, to evaluate a company's performance and position. Financial accounting follows generally accepted accounting principles (GAAP) and presents the results in a standardized format.

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