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