Financial accounting system prepares accounts for only the monetary aspects of every business transaction with keeping certain objectives in mind. Whereas cost accounting system is maintained with a view to achieve its objectives. All transactions are collected from the same invoices vouchers or receipts which are also common for financial account. Costs are then classified according to functions, departments, or products. Though real accounts and nominal accounts are of direct relevance in ascertaining the cost of products. Personal accounts and cash or bank account are not directly related to cost ascertainment. When cost accounting system is maintained it involves maintenance of certain bulks for recording day to day transactions. It is not necessary to maintain cost account under double entry system. In cost accounting, the cost books are basically maintained under the two systems.
- Non-integral or non- integrated cost accounting
- Integral or integrated cost accounting.
