Question

Explain the causes of difference between costing profit and financial profit comparison chart.

Answer 1

The causes of difference between the cost profit and financial profit can be mainly judged on the following factors items that are shown in financial account i.e. on the basis of expenditure, income, and profit, which can be interest on capital, donation, discount on debenture, interest received, share transfer fees, income tax paid, bonus, etc. on the other hand, cost profit is the interest on capital employed in production.