What are the differences between cost accounting and financial accounting?
| S.no | Cost accounting | Financial accounting |
|---|---|---|
| 1. | It includes the preparation of a report which the management requires to run a business. | It includes the preparation of a report for investors, credit rating agencies, creditors, etc |
| 2. | Cost accounting collects the cost of raw materials, finished goods inventory, and work-in-process. | It includes all this information into its financial reports and mainly into the balance sheet. |