Shaping Futures with Knowledge
| Basis of Difference | Cost Accounting | Financial Accounting |
|---|---|---|
| Purpose | To determine, control, and reduce cost of production. | To record financial transactions and prepare financial statements. |
| Users | Used by internal management. | Used by both internal and external stakeholders. |
| Time Focus | Focuses on future costs for planning and control. | Focuses on historical data for reporting. |
| Scope | Narrow, focusing on cost data. | Broad, covering all financial transactions. |
| Legal Requirement | Not legally mandatory (except in some industries). | Legally required under law and standards. |
| Accounting Standards | Not bound by accounting standards strictly. | Must comply with accounting standards (GAAP/IFRS). |
| Reporting Frequency | As required by management (weekly/monthly). | Usually annually or quarterly. |
| Format | No fixed format; flexible for internal use. | Follows standard format prescribed by law. |
