Category Archives: Accounting

Difference between financial accounting and cost accounting

Financial Accounting Vs Cost Accounting 1) It involves the preparation of a set of final accounts for each accounting period in accordance with the accounting standards and company legislation. It gives the overall financial picture of a company. 1) It is an internal management tool which provides appropriate timely information of management to help them Continue Reading »

Reconciliation between the financial and Cost Accounts

1.1 Where accounts are maintained on the integral system, there are no separate cost accounts and financial accounts. Hence, the question of reconciliation of cost and financial accounts does not arise. However, where separate sets of books are maintained for cost accounting and financial accounting system, it is imperative that periodically the two accounts are Continue Reading »

Classification of Cost

Cost Classification refers to the process of grouping costs according to their common characteristics such as nature of expenses, function, variability, controllability and normality. Cost Classification can be done on the basis of time, their relation with the product and accounting period. Cost classification is also made for planning and control and decision making. Thus Continue Reading »

Cost Accounting

In earlier concept, costing was defined as the technique and process of ascertaining costs of a given thing. In sixties, the definition of cost accounting was modified as the “ application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and ascertainment of profitability of goods Continue Reading »

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