Distinguish between cost accounting and financial accounting
1. Information gathering on Financial Accounting is on what happened (historical) rather than what is going to happen. While Cost Accounting Information gathering is both historical basis and future basis
2. [blur color=blue]Financial Accounting Information is prepared at a specified period of time (usually quarterly or yearly) whereas Cost Accounting Information is prepared only when needed by management[/blur]
3. [blur color=green]The primary emphasis of Cost Accounting is segment reporting. This means that the costs and sales of individual products or parts of the business are prepared for management in order to know the profitability of each product or part. In Financial Accounting, the focus of reporting is on the totality of the business rather than individual[/blur]
4. [blur color=purple]Cost Accounting Information is meant for the use of internal decision makers of the business (ie. Management) while financial Accounting Information is for both Internal and External[/blur]
5. [blur color=yellow]The main objectives of preparing financial Accounting Information is to enable Management to render accounts of its stewardship in terms of the profit generated in relation to the assets invested in the business. On the other hand, the primary purpose of preparing cost accounting information is to aid internal decision making in the organization[/blur]
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