Cost accounting differs from financial accounting in that financial accounting:
A)Is mostly concerned with external financial reporting.
B)Is mostly concerned with individual departments of the company.
C)Provides the additional information required for special reports to management.
D)Puts more emphasis on future operations.

Question

Quizplus · Accepted Answer

Financial accounting is primarily concerned with reporting financial information to external parties, such as investors and creditors, while cost accounting is focused on providing internal management with information related to the cost of producing goods or services. Cost accounting is used to help companies make decisions related to pricing, budgeting, and cost control. Financial accounting, on the other hand, is mostly focused on historical financial statements and compliance with accounting standards.

Cost Accounting Differs from Financial Accounting in That Financial Accounting