Q.State any two points of distinction between financial accounting and cost accounting.

Financial accounting = overall, external, statutory; cost accounting = detailed, internal, for control. | Basis | Financial Accounting | Cost Accounting | | --- | --- | --- | | Purpose/scope | Records all transactions for the whole business; shows overall profit/loss and financial position | Records and analyses costs by product, job, process or department; shows detailed cost per unit | | Users & compulsion | Mainly for outsiders (owners, creditors, government); legally compulsory | Mainly for internal management; generally voluntary (statutory only in some cases) | (Further: financial accounting deals mostly with monetary, historical data; cost accounting uses both monetary and quantitative data and helps control and decision-making.) …