Cost and Financial Accounting
| Basis of Comparison | Cost Accounting | Financial Accounting |
| Meaning | Facilitates determination, tracking and controlling of various costs incurred in the business. | Records financial information of the business to reflect the profitability and the correct financial position of the company at a particular date. |
| Objective | Reducing and controlling costs | Keeping complete record of the financial transactions, measuring profit position and financial position. |
| Information recorded | All information relating to material, labour and overhead, which are used in the production process | All transactions which can be measured in monetary terms. |
| Type of cost recorded | Both historical and predetermined cost | Historical cost only |
| Mode of Presentation | No statutory forms and voluntary presentation | Prepared according to accounting concepts and conventions, standards and in compliance with various acts and statutes |
| Time period of Reporting | No fixed time period. Reports prepared as and when required | Financial Statements are prepared at the end of the accounting period, which is normally 1 year. |
| Users | Internal stakeholders like management of the organization | All stakeholders including, both, internal and external parties like customers, creditors, government, shareholders, etc. |
| Valuation of Stock | At cost | Cost or Net Realizable Value, whichever is less |
| Mandatory | No, except for manufacturing firms it is mandatory. | Yes for all firms |
| Profit Analysis | Generally, the profit is analysed for a particular product, job, batch or process, thus, enabling management to eliminate less profitable product lines and maximise the profits by concentrating on more profitable ones | Income, expenditure and profit are analysed together for business as a whole |
| Forecasting | Forecasting is possible through budgeting techniques. | Forecasting is not at all possible. |