Archive | Differences

Cost Accounting and Financial Accounting | Accounting

0The upcoming discussion will update you about the differences between cost accounting and financial accounting. Difference # Cost Accounting: 1. Cost accounting is an internal reporting system for an organization’s own management for decision making etc. 2. Cost accounting is more concerned with short-term planning and its reporting period is much lesser than Financial Accounting. […]

Cost Accounting and Management Accounting: Difference

The upcoming discussion will update you about the differences between cost accounting and management accounting. Difference # Cost Accounting: 1. Cost accounting is concerned more with the ascertainment, allocation, distribution and accounting aspects of costs. 2. The Cost Accounting data generally serves as a base to which the tools and techniques of Management Accounting can […]

Difference between Fixed Budget and Flexible Budget | Costs

The upcoming discussion will update you about the differences between fixed budget and flexible budget. Difference # 1. Fixed Budget: 1. Costs are not classified according to their variability, i.e., fixed, variable and semi- variable. 2. Fixed budget is inflexible and remains the same irrespective of the volume of business activity. 3. Fixed budget assumes […]

Job Costing and Contract Costing | Cost Accounting

The upcoming discussion will update you about the differences between job costing and contract costing. Difference # Job Costing: 1. Job work is carried in the premises. 2. An order, a unit, lot or batch of product may be taken as cost unit. 3. Cost is first allocated to cost centres and then charged to […]

Job Costing and Process Costing | Cost Accounting

The upcoming discussion will update you about the differences between job costing and process costing. Difference # Job Costing: 1. Job costing is concerned with the cost of an individual job or batch regardless of the time taken to produce it. 2. A job is carried out or a product is produced to meet the […]

Operation Costing | Cost Accounting

The below mentioned article provides a note on operation costing. Operation Costing is a refined method of Process Costing. In Process Costing, each process or stage of production is costed separately. The manufacture of a product may consist of several operations. In Operation Costing, costs are collected for each operation instead of each process or […]

Difference between Cost Audit and Financial Audit | Auditing

The upcoming discussion will update you about the differences between cost audit and financial audit. Difference # Cost Audit: 1. Covers only select specified industries. Product wise coverage and not the whole company. SSI units are exempted. 2. Applicable only after issue of the order by Central Government. 3. By a Cost Accountant. 4. Appointment […]

Standard Costing and Budgetary Control | Cost Accounting

The upcoming discussion will update you about the differences between standard costing and budgetary control.   Difference # Standard Costing: 1. Standard costing is a system of accounting where predeter­mined costs are used for analysis of variances and control of the entire organization. 2. Standard costs are scientifically predeter­mined in respect of materials, labour, overheads. It […]

Difference between Leasing and Hire Purchase | Financial Management

The upcoming discussion will update you about the differences between leasing and hire purchase. Difference # Leasing: 1. The lessee will use and have control over the asset without having a title to it and will pay periodical lease rentals over a specified period. 2. The lessee uses the asset as per lease contract. 3. […]

Difference between TMA and VCA | Cost Accounting

The upcoming discussion will update you about the difference between Traditional Management Accounting (TMA) and Value Chain Analysis (VCA). Difference # Traditional Management Accounting (TMA): 1. Focus – Internal 2. Perspective – Value added 3. Cost driver concept – Single cost driver (cost is function of volume). Application at the time overall firm level (cost […]

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