Difference between Financial Accounting and Cost Accounting

Following is the difference between Financial Accounting and Cost Accounting

Financial Accounting  Cost Accounting
1.Provides information to external 1.Provides information to internal users.
2. Provides general purpose financial statementsand reports 2. Provides special purpose statements
3. Must conform to generally accepted accounting principles 3. Must conform to information needs of management.
4. Provides accounting data in monetary terms. 4. Provides accounting data in monetary and non monetary terms.
5.Financial statements are prepared on yearly or half yearly basis. 5. Cost statements and reports are prepared more frequently i.e. weekly and daily basis.


Leave a Reply

Your email address will not be published.