What is meant by Cost Accounting? How it is different from
Financial Accounting?
- 6 Answers
- 17497 Views
- AV Vision, Deloitte, DigiCall, Parco, TATA, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / satish and ramu
cost is the amount of the expenditure. In cost accounting
we can find cost of goods and services.
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 accouting provides the management detailed information
regarding cost of each product, services etc.
| Is This Answer Correct ? | 46 Yes | 5 No |
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 |
Answer / sowmya.k
Financial accounting takes into consideration of the
transactions which can be expressed in terms of money.
2)It is historical form of accounting.
3)In practical circumstances, it is more or less legal
requirement.
4)It is ment for for those who are external to the
organisation.Example investors, customers, suppliers,banks
and financial institutions.
5)It discloses the financial performance and financial
status of the business as a whole.
6)they are intirm reports and not the final ones.
COST ACCOUNTING
Cost accounting is the process of classifying and recording
of the expenditure in a systematic manner, with the
intention of ascertaning the cost of the cost centerwith
the intention of controlling the cost.
1)it views the organisation from the angle of indivdual
component.example a department,a process.
ITS OBJECTIVES
a) ascertainment of cost and profitablity
b)cost control
c)presentation of information for decision making
2)it is ment for those people who are the part of decission
making.
3)it may have legal requirements in some exceptional cases.
Section 209(1)(d) if the Companies Act 1956 makes it
mandotary.
4)it takes into consideration all transactions irrespecitve
of whether past or future transactions.
| Is This Answer Correct ? | 10 Yes | 2 No |
Answer / bvsrikanthsastry
in the present day of business world it is necessary for
business concern to conduct its activities with most
efficient manner. it is also very essential for a
manufacturer to know the cost of unit producing in a
manufacturing concern.similarly every business unit is
interested in knowing what is the cost of rendering
services or what it the cost of producing an article.
| Is This Answer Correct ? | 6 Yes | 1 No |
A type of debt instrument that is not secured by physical
asset or collateral. Debentures are backed only by the
general creditworthiness and reputation of the issuer. Both
corporations and governments frequently issue this type of
bond in order to secure capital. Like other types of bonds,
debentures are documented in an indenture.
Reporting the financial position performance of the firm
through financial statements issued to the external users on
the periodic basis.
| Is This Answer Correct ? | 2 Yes | 2 No |
Answer / fauji
what is meant by the accounting period convention ?
| Is This Answer Correct ? | 5 Yes | 6 No |
what is the uniform public construction cost accounting act?
what is difference between b.r.c and f.i.r.c
Explain Cash Basis of accounting
What is Opening & Closing Entry
How do you manage the sales account in tally
Expand---------NMOP
what is difference between nominal and real account ?
what perposs calculate the fixed assets
what is the finalisation of balancesheet and how it can be made
what is bank reconcilation?
concepts of accounting
what is dividend? how do the use an accountancy?
Audit 
