Question

Why is reconciliation of cost and financial accounts necessary?

Answer 1

Need for Reconciliation:

To check the accuracy of the information in cost accounting books.

It ensures the reliability of cost informations recorded in cost accounting books. When cost and financial accounts are kept under integral accounting system, there will be only one set of accounts.

Answer 2

Answer:

Need of Reconciliation of Cost Accounts and Financial Accounts • To reveal the reasons for difference in profit or loss between cost and financial accounts. To check the arithmetical accuracy of both sets of accounts as well as to detect errors and omissions committed in the accounts. Items shown only in Cost accounts.