Editing Cost accounting (section)

== Cost accounting vs financial accounting==
{{see also|Financial accounting}}
{| class="wikitable"
|+Differences between cost and financial accounting
!Cost accounting
!Financial accounting
|-
|Computes costs in a rigorous manner that facilitates cost control and cost reduction.
|Analyses transitions in the current accounting period into financial statements (Statement of Cashflows, Profit or Loss, Balance Sheet etc.). 
|-
|Reports only to the organizations internal management to aid their decision-making.
|Reports the results and financial position of the business to the government, creditors, investors, and other external parties.
|-
|Cost classifications based on functions, activities, products, processes and on the information needs of the organization in its planning and control.
|Cost classifications based on the types of transactions.
|-
|Combines objective and subjective assessment of costs contributing to a standard result.
|Aims to present a 'true and fair' view of transactions.
|-
|Information can be presented as accountants see fit.
|Must adhere to accounting standards such as the [[International Financial Reporting Standards|IFRS]] and GAAP.
|}