Cost Accounting vs Financial Accounting #Shorts

Cost accounting vs financial accounting:
Cost accounting is about just keeping records of all the costs incurred in the business. And the goal is to keep track of the cost and reduce it.

Financial accounting is about keeping records of every single transaction in the business. The revenue, expense, assets liabilities and equities.

Cost accounting is done to prepare the statements for the people inside the organization. The management will see what is going on in the company and they will make certain decisions based on the data on how they will continue to run their business.
Financial accounting is done to prepare the statement for people outside the organization. The broad statement of where the company stands at any moment is time will be recorded through financial accounting.

A typical business organization will have both cost accounting and financial accounting system in place.

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