What are the difference between Cost Accounting and Financial Accounting?

The Difference Between Cost Accounting and Financial Accounting are as follows:

Cost Accounting:

  • The main purpose of cost accounting is to analyse, ascertainment and control of cost.
  • Cost accounting presents cost information at frequent intervals.
  • Cost accounting generally kept voluntarily to meet the requirements of the management.
  • Cost accounting records transactions in a objective manner. It means the purpose for which the cost in incurred.

Financial Accounting:

  • The main purpose of financial accounting is to record financial transactions, finding out profit or loss and financial position.
  • Financial accounting presents financial information at the end of the accounting period.
  • Financial accounting is kept compulsory in such a way as to meet the requirement of the Companies Act and income Tax Act.
  • Financial accounting records transactions in a subjective manner. It means according to the nature of expenses.