ASSIGNMENT ON ACC220

(1) Definition of cost Accounting.

What do you understand by the term Cost Accounting, and
to what extent is the concept differs from Financial
Accounting.
Solution.
Cost Accounting is defined as the techniques and
processes of ascertaining cost. This may be required as the
systematic approach to the measurement, recording and
controlling of materials, labour and fixed assets.
Most importantly, it's aims at recording,
classifying,analysing and allocating or distributing
expenditure for the determiation of product, job, activity
or service cost.

What makes cost accounting differs from Financial

Accounting.
(1) Cost accounting is an extention of the principles that
are followed in the financial accounting, although there are
some differances in the emphasis between cost accounting
and financial accounting approaches.
(2) Cost accounting is concerned with providing
management with accounting information useful for
management planning and others administrative tasks.
Majorly, it deals with recording, classfying,summarising,
interpreting and presenting in a significant manner. While
financial accounting is mainly concerned with satifying
users like creditors, Government agencies,investors and
owners and non-management staff. Financial accounting is
also concerned with stewardship function of accounting.
(3) Cost accounting is concerned with the composition of
cost and the sources of profit. While financial accounting
deals with the calculation of profit.
(4) Cost accounting is concerned with the aspects of cost
control, comparison and utilisation. While financial
acounting on the other hands deals with personal and
impersonal accounts.