Cost Accounting and Financial Accounting.

The difference between Cost Accounting and Financial Accounting is as follows :

Cost Accounting                                                          Financial Accounting

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1) Ascertains the cost of goods or                       Presents the operational results and
services.                                                                         financial position of the business.

 

2) Serves the information needs of                    Provides financial information about the
the management.                                                      company to itsshareholders, creditors,
employees and the society at large.

3) Need not be followed by a                                Needs a system of independent audit
system of external audit.                                        to ensure that the financial statements
give a true and fair view of the state of
affairs.