FIRST WE HAVE TO KNOW WHAT IS COST ACCOUNTING AND FINANCIAL

COSTS:
* Cost accounting is a technique used in companies, stores or other
branches to collect, record and report information related to costs,
with said information, decide in an optimal and appropriate way
related to planning and control.
Cost accounting has a managerial approach since it provides basic
information to company managers in order to properly plan and control it, as well
as for the costing of its products and services.
The main objectives of cost accounting are:
Evaluate the efficiency in terms of the use of material, financial and workforce
resources, which are used in the activity.
Serve as a basis for determining the prices of products or
services.
Facilitate the assessment of possible decisions to be made, which allow the
selection of that variant, which provides the greatest benefit with the minimum of
expenses.
Classify expenses according to their nature and origin.
Analyze expenses and their behavior, with respect to the standards established
for the production in question.
Analyze the possibility of reducing expenses.
Analyze the costs of each structural subdivision of the company, based on the
expense budgets that are prepared for it.
Evaluate the efficiency in terms of the use of material, financial and workforce
resources, which are used in the activity.
Serve as a basis for determining the prices of products or services.
Facilitate the assessment of possible decisions to be taken, which allow the
selection of that variant, which provides the greatest benefit with the minimum of
expenses.
Classify expenses according to their nature and origin.
Analyze expenses and their behavior, with respect to the standards established for
the production in question.
Analyze the possibility of reducing expenses.
Analyze the costs of each structural subdivision of the company, based on the
expense budgets that are prepared for it.

* Financial accounting is a discipline that consists of collecting, ordering and

recording the information of the economic activity of a company such as expenses,
profits to be able to generate an accounting and thus be able to
take out the cost accounting of the company.
Financial accounting is in charge of calculating the profit for the
business year, here sales and inventories of the company are
taken into account.
The importance of cost accounting within companies is very
high that the financial evolution of the organization depends directly on it, it is
possible thanks to the control, monitoring and development of strategies and
processes that intervene in the relationship of income and expenses of the
company,
In order to have an efficient cost accounting, financial accounting,
administrative accounting and the balance sheet presented to the
organization's board through the collection of expenses and costs must first be
taken into account.
-THE IMPORTANCE OF COST ACCOUNTING IN FINANCIAL ACCOUNTING.
Financial Accounting with Management Accounting constitute the two most
important branches of accounting, both arising from the need for specialization
and fulfillment of clearly defined purposes, therefore, management
accounting is the branch of cost accounting therefore both important
to the accumulation and analysis of cost information for internal use
by managers
Management Accounting as a branch of Accounting is in charge of identifying,
measuring and assessing the internal circulation of the company, rationalizing and
controlling its resources to provide its managers with the necessary and sufficient
information that allows them to adopt decisions in the internal sphere and in the
short term depending on the organization, according to the proposed goals.
Cost Accounting is a branch of Management Accounting which is fundamentally
related to the accumulation and analysis of cost information for internal use by
managers, in inventory valuation, planning, control and management. decision
making.