Question

cost account concept

Answer 1

ʜᴇʏᴀ ᴜsᴇʀ! 

ᴛʜɪs ʙʀᴀɴᴄʜ ᴏғ ᴀᴄᴄᴏᴜɴᴛɪɴɢ ɪs ᴄᴏɴᴄᴇʀɴᴇᴅ ᴡɪᴛʜ ᴀsᴄᴇʀᴛᴀɪɴɪɴɢ ᴄᴏsᴛ ᴏғ ᴘʀᴏᴅᴜᴄᴛs, ᴏᴘᴇʀᴀᴛɪᴏɴs, ᴘʀᴏᴄᴇss ᴏʀ ᴀᴄᴛɪᴠɪᴛɪᴇs. ɪᴛ ɪs ᴛʜᴀᴛ ʙʀᴀɴᴄʜ ᴏғ ᴀᴄᴄᴏᴜɴᴛɪɴɢ ᴡʜɪᴄʜ ᴅᴇᴀʟs ᴡɪᴛʜ ʀᴇᴄᴏʀᴅɪɴɢ ᴄᴏsᴛ ᴡɪᴛʜ ᴛʜᴇ ᴏʙᴊᴇᴄᴛɪᴠᴇ ᴏғ ᴀsᴄᴇʀᴛᴀɪɴᴇᴅ, ʀᴇᴅᴜᴄɪɴɢ ᴀɴᴅ ᴄᴏɴᴛʀᴏʟʟɪɴɢ ᴄᴏsᴛ. 

ʜᴏᴘᴇ ᴛʜɪs ᴍᴀʏ ʜᴇʟᴘ ʏᴏᴜ! ʜᴀᴘᴘʏ ᴅɪᴡᴀʟɪ 

Answer 2

In traditional accounting, the profit and loss is derived by deducting expenses from income whereas in cost accounting the motive is to be cost effective by reducing costs of process, production or project.

Financial accounting views an organization in entirety whereas cost accounting segregates the organization into various processes, projects or production units.  

Financial accounting is used to present the position of the organization to its stakeholders whereas cost accounting is used for internal review of costs.

Financial accounting is uniform across various businesses, however, cost accounting methods vary based on the type of business.