| 1 |
Meaning |
Focuses on the determination, tracking, and controlling of costs incurred in the business. |
Records financial information to reflect the profitability and the correct financial position of the company at a particular date. |
Concerned with providing financial and non-financial information to managers for organizational decision-making and control. |
| 2 |
Objective |
Reducing and controlling costs. |
Keeping a complete record of financial transactions, measuring profit and financial position. |
Aiding management in planning, decision-making, and performance evaluation. |
| 3 |
Information Recorded |
Relates to material, labor, and overhead used in the production process. |
Transactions measurable in monetary terms. |
Both financial and non-financial information relevant to managerial decision-making. |
| 4 |
Type of Cost Recorded |
Both historical and pre-determined costs. |
Historical cost only. |
Includes all types of costs, also focuses on qualitative information. |
| 5 |
Mode of Presentation |
No statutory forms, voluntary presentation. |
Prepared according to accounting standards and in compliance with various acts. |
No statutory format; tailored to meet the informational needs of management. |
| 6 |
Time Period of Reporting |
No fixed time period; reports prepared as and when required. |
Financial statements are prepared at the end of the accounting period, usually 1 year. |
Reports are generated as needed, often monthly, quarterly, or annually, and sometimes ad-hoc. |
| 7 |
Users |
Primarily internal stakeholders like management. |
Both internal and external parties like customers, creditors, government, shareholders, etc. |
Primarily management and internal users. |
| 8 |
Valuation of Stock |
At cost. |
Cost or Net Realizable Value, whichever is less. |
Uses various methods depending on management requirements, may include standard cost, marginal cost, etc. |
| 9 |
Mandatory |
No, except for manufacturing firms where it may be required by regulations. |
Yes, for all firms to comply with statutory requirements. |
No, it is discretionary and tailored to the specific needs of the organization. |
| 10 |
Profit Analysis |
Generally, profit is analyzed for a particular product, job, batch, or process. |
Income, expenditure, and profit are analyzed together for the business as a whole. |
Focuses on analyzing financial information for internal decision-making, including profitability of projects or departments. |
| 11 |
Forecasting |
Possible through budgeting techniques. |
Not typically involved in forecasting. |
Integral part, involves various forecasting and modeling techniques for planning and control. |
