Question

difference between cost profit and financial profit​

Answer 1

Answer:

Cost profit is the profit arrived as per costing records and financial profit is arrived from the financials records.

Explanation:

Costing records emphasize on the manufactured cost of the product. It deals with the costing records. It records each cost at every stage for production of single unit  i.e. raw material, work in progress and finished goods.

Financial records are generally mean financial statements i.e. profit and loss account and balance sheet.

Answer 2

Cost profit is the benefit shown up according to costing records and financial profit is shown up from the financial records.

Financial profit:

• Financial profit is net gain acquired in the wake of taking away all dollar costs from absolute income.
• As a result, it shows how much cash a firm has left over subsequent to deducting the unequivocal expenses of maintaining the business.

Cost profit:

• It addresses the gradual cash created for every item/unit sold in the wake of deducting the variable piece of the association's expenses.
• Essentially, it shows the piece of deals that assists with taking care of the organization's proper expenses.

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