222

$show=home

Welcome to Accounting Education

The Accounting University with 3400+ Accounting contents as study material which can watch, read and learn anyone, anywhere.

Start your studies

$show=home

Latest $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Journal Entries $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Balance Sheet $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Cost Accounting vs Financial Accounting

Both cost accounting and financial accounting are the parts of accounting. Both provide useful information to the businessman for decision making. Both can be used for reducing cost and increasing the profit and wealth of business. But there are lots of differences between cost accounting and financial accounting. Financial accounting provides the information of expenses on the basis of historical transactions. In cost accounting, we show the detailed information of expenses.
For example: We have 5 products. Financial accounting's income statement will show just the total material cost, direct expenses, indirect expenses, sale and net profit but it will not show the each product's material cost, labour cost, overhead cost, sale and net profit. All these information can be obtained through cost accounting.

Now, we are explaining the differences between cost accounting and financial accounting.

1. Meaning 

Cost Accounting : Cost accounting is that part of accounting which is helpful to calculate the cost and control the cost. In cost accounting, we deeply study the variable cost, fixed cost, overheads and capital cost.

Financial Accounting : Financial Accounting is that part of accounting in which we record the transactions and we make the financial statements. Through making the financial statement, it provide information of profitability and financial position to the interested parties.

2. Objective

Cost Accounting : We can not take all decisions on the basis of information which have been provided by financial accounting. After making the financial statements under financial accounting, we calculate the cost of each unit and use the techniques of cost accounting for better decision making.

Financial Accounting : Main objective of financial accounting is to show the financial statement correctly.

3. Law 

Cost Accounting : There is not any restriction on the cost accounts. It can be made according to the need of company but some company must audit their cost accounts under cost audit.

Financial Accounting : In financial accounting, there are lots of law restrictions. For example, company accounts and financial statements must be according to the format of company law. It should also follow the rules of IFRS and income tax law.

4. Controlling 

Cost Accounting : In cost accounting, we study the techniques of controlling the cost. All the costs are calculated for the purpose of controlling the cost. For example, Company produces product A, B and C. If product C is generating 30% but product A and B is generating just 5%. We will try to control the cost of A and B product through different techniques of cost control.

Financial Accounting : In financial accounting, we just record the transactions correctly. We do not care to control the cost.

5. Profit Analysis

Cost Accounting : In cost accounting, to find the profit per job or per batch or per service unit  is possible.

Financial Accounting : In financial accounting. we make the income statement which shows the net profit or loss or whole organisation not one job or batch.

6. Record 

Cost Accounting : In cost accounting, both actual transactions record and estimations are used. For example budgetary control and variance analysis, we set the standard cost which is based on the estimations. These estimations may be differ from actual cost.

Financial Accounting : In financial accounting, we use actual transaction for recording purpose. We do not use the estimation for preparing income statements and balance sheet.

7. Valuation of Inventory

Cost Accounting : In cost accounting, inventory's valuation will be on cost.

Financial Accounting : In financial accounting, inventory's valuation will be on the cost or  market value which will be low.

8. Cycle 

Cost Accounting : In cost accounting, we first calculate the raw material cost. Then, we calculate the labour cost. Then, we calculate the direct material cost. After this, we calculate the overhead cost. All these cost are added. A profit margin is added. An estimated sale price is calculated. Its whole controlling cycle will be relating to control the cost of raw material, labour cost and overheads.

Financial Accounting : In financial accounting, we pass the journal entries. Then, we make the ledger accounts. Then, we prepare the trial balance. Then, we make the final accounts.


http://www.krantikari.org/2016/09/cost-accounting-ebook.html

Comments

: 5
  1. the information on cost accounting vs financial accounting was indeed informative!!! Thanks

    ReplyDelete
  2. Really helpful thank uu so much

    ReplyDelete
  3. Really its very help full thanks

    ReplyDelete
In comment, you can give your feedback, reviews, ideas for improving content or ask question relating to written content.

 


Name

access,2,account,86,accountant,95,Accounting,685,accounting definitions,99,accounting ebook,3,Accounting education,85,Accounting Education Ads Help,1,accounting procedure,2,accounting process outsourcing,2,Accounting Software,52,advance,3,advertising,6,africa,7,Amalgamation,6,amendments,16,Amortization,1,announcements,62,Annuity,2,assets,53,audit,47,auditing,41,Australia,2,B.Com.,22,balance sheet,88,bank,111,Bank reconciliation,12,banking,33,basic accounting,110,BBA,1,benefits,13,best,50,bill,12,black money,3,blog,12,bloggers,7,book keeping,4,bookkeeping,3,Branch Accounting - full tutorial,8,budget,35,Budget variance,13,business,65,businessman,9,CA,30,calculator,4,canada,3,capital,72,capital budgeting,27,career,21,cash,40,cash book,8,cash flow statement,11,Chiense,1,children,13,china,6,class,3,coaching,2,coins,2,college,6,commerce,10,commerce students,7,company,36,computer,9,computer accounting,1,conference,4,Contact vinod kumar,1,Control Your Spending,27,corporate accounting,69,cost,160,cost accounting,195,cost center,8,cost centre,1,CPA,2,credit,18,credit card,11,cs,10,currency,35,data,11,Debit and credit,17,debit cards,1,debt,62,debtor,21,degree,6,depletion,2,depreciation,38,Diwali Messages,12,documents,4,dollar,5,domain,3,Downloads,3,Dubai,1,e-accounting,17,earning,17,education,246,Education Loans,6,email,15,employee,4,EPF,2,ERP,7,euromoney,1,examination,7,excel,17,excise duty,6,expenses,65,facebook,7,factor of loan,1,fans,2,feature,32,fifo,5,FII,4,fiji,1,finacle,1,finance,823,Finance Journal Entries,6,Financial,134,financial accounting,147,Financial Statements,4,fire insurance,3,flickr,2,flow,4,forensic,4,forex,21,formula,8,france,1,fraud,6,free,2,fun,34,function,1,fund,48,GAAP,36,GDP,1,gdr,5,germany,1,gold,7,goodwill,4,goodwill accounting,3,google,34,google apps,3,google apps,1,google base,1,google buzz,1,google calendar,1,Google docs,38,google finance,3,google fusion tables,1,google talk,5,govt.,5,GST,33,guide,85,health,6,Hindi,2,Hindi Language,3,history,3,holding company,3,How to treat FBT in Tally 9,1,HRA,3,ICAI,11,ICAWI,3,ICICI Bank,1,IFRS,11,income,17,income statement,19,Income Tax,8,India,57,indian railway,1,Indonesia,1,inflation,4,inflation accounting,3,infographics,8,information,7,inspiration,176,insurance,14,insurance accounting,2,Intangible,3,interest,26,international,7,Internet,40,Introduction of Tally 9,1,inventory,41,investment,135,investment in Shares,6,invoice,3,IT,1,Japan,1,Job costing,4,journal entries,144,Journal Entries eBook Help,4,Kalculate,1,keyboard,3,kuwait,2,laptop,2,law,4,LBT,1,learning,36,lease,5,lecture,11,ledger,17,leducation,1,Leverage Analysis,7,liabilities,16,lifo,3,linkedin,1,loan,74,logical point,1,loss,5,loss of profit,1,M.Com.,5,m.phil,2,malaysia,3,management accounting,129,manual accounting,4,manufacturing account,1,market,11,marketing,3,mastercard,2,material,13,MBA,14,MCA,1,media,4,migration,2,mobile,9,money,61,ms word,3,ms. excel,14,multi currency in tally 9,1,Multicurrency Accounting,3,mutual fund,30,national security,1,new and sacrifice ratio,1,new york times,1,new zealand,1,news,1,NGO,5,nonprofit-accounting,6,North Georgia Mountains,1,Notification,1,NPV,17,NSE,1,odbc,2,office,10,oman,1,online application,2,online accounting,11,Online Accounting Course,6,otcei,1,pakistan,3,parents,3,Partnership,1,pay pal,3,pdf,4,Personal Finance,6,pie chart,1,pie chart of income,2,pnb,5,podcast,1,ppf,1,presentation,10,price,7,privacy policy,2,prof. vinod kumar,13,profit,24,profit and loss account,12,project management,11,provision,14,purchase,9,puzzles,2,quickbooks,3,Quote,22,quotes,42,quotes of svtuition,1,rating agency,2,ratio analysis,34,RBI,7,readers,13,real estate,13,rectification of errors,11,remote control,2,reports,10,reserves,8,responsibility accounting,4,retirement,2,revenue,3,Revenue reserves,2,review,7,risk,11,rupees,9,salary,5,sale,12,SAP,3,saudi arabia,1,saving,19,sbi,9,scholarship,2,school,1,SEBI,13,security,30,service tax,23,share,20,share trading,15,Shares,16,shri lanka,3,singapore,2,sms,6,social accounting,7,society,5,solution,219,South Africa,1,stock,24,stock exchange,22,structure,6,student,39,students,70,study,21,subsidiary company,2,svtuition,14,swiss bank,2,tally,100,tally 9,8,Tally 7.2,8,Tally 9,42,Tally.ERP 9,59,TallyPrime,1,tanzania,2,tax,94,Tax Accounting,30,TDS,15,teacher,62,teaching,112,technology,33,test,40,testimonial,15,testimonials,15,thailand,1,tips,60,trading,5,trading on equity,2,transaction,7,trend,12,trial balance,14,truthfulness,1,tuition,3,twitter,10,UAE,5,UGC - NET Commerce,13,UK,11,United Arab Emirates,1,university,9,usa,25,valuation,9,VAT,22,Video,36,Voucher and vouching,4,Wealth,8,wikipedia,25,working capital,29,youtube,14,
ltr
item
Accounting Education: Cost Accounting vs Financial Accounting
Cost Accounting vs Financial Accounting
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHIJC3-9YRGMUXfpYb9BnMEYxhPlaNor4S1T7L7JMMNzDPvzokwbslbr9GAenRJoNAbaAgaqsaarRXwdXMZVeaqkdh0_tofshZZcVcJeQn62dhnxHITSYVrcT1ZZ5WlhO2vGPIYb53RGs/s1600/cost+accounting+ebook+promotion.PNG
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiHIJC3-9YRGMUXfpYb9BnMEYxhPlaNor4S1T7L7JMMNzDPvzokwbslbr9GAenRJoNAbaAgaqsaarRXwdXMZVeaqkdh0_tofshZZcVcJeQn62dhnxHITSYVrcT1ZZ5WlhO2vGPIYb53RGs/s72-c/cost+accounting+ebook+promotion.PNG
Accounting Education
https://www.svtuition.org/2012/09/cost-accounting-vs-financial-accounting.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2012/09/cost-accounting-vs-financial-accounting.html
true
2410664366776677676
UTF-8
Loaded All Posts Not found any posts VIEW ALL Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENTS FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy