In the syllabus of MBA finance bot financial and cost accounting is included so , you should know the basic difference between two type of accounting .
Financial accounting is the warehouse of historical accounting data . But cost accounting is the system to calculate each product or job cost from financial data and then try to control them
Suppose
Comparison between financial accounting and Cost Accounting
Cost accounting gives clear information A and B product generate average 25% profit but C generate loss , Now manager takes the action
I) to stop the production of C
Or reduce the cost of C
Or
Increase the sale value of C
2. Financial accounting gives only monetary information but cost accounting tells non monetary items also.
3. Calculation of efficiency in financial accounting is not possible but cost accounts calculate each cost of various cost centers and provide the information about which machine , group of employee or cost center is more efficient .
See Also
comparison between MBA – finance and C.A.
Scope of Cost Accounting
Financial accounting is the warehouse of historical accounting data . But cost accounting is the system to calculate each product or job cost from financial data and then try to control them
Suppose
Comparison between financial accounting and Cost Accounting
Cost accounting gives clear information A and B product generate average 25% profit but C generate loss , Now manager takes the action
I) to stop the production of C
Or reduce the cost of C
Or
Increase the sale value of C
2. Financial accounting gives only monetary information but cost accounting tells non monetary items also.
3. Calculation of efficiency in financial accounting is not possible but cost accounts calculate each cost of various cost centers and provide the information about which machine , group of employee or cost center is more efficient .
See Also
comparison between MBA – finance and C.A.
Scope of Cost Accounting
