Difference between financial accounting and cost accounting! Financial accounting is concerned with recording, classifying and summarizing financial transactions pertaining to an accounting period. The basic objective is to provide a commentary to the shareholders and outside parties on the financial status of an enterprise in the form of a profit and loss account and balance sheet. Cost accounting, on the [...]
In many estates, the executor faces the problem of differentiating between income and principal transactions. For example, a will might state "all income earned on my estate for five years after death is to go to my sister, with the estate then being conveyed to my children." The recipient of the income is known as an income beneficiary whereas the [...]
Costs that the costing system directly traces to the cost object are direct costs and that are not directly traced to the cost object are called indirect costs. Resources that are common to more than one cost object are necessarily classified as indirect costs. These costs are aggregated under an account number (e.g. repair and maintenance of building) and then [...]