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Cost accounting differ from financial accounting

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How does cost accounting differ from financial accounting? Provide examples to support your assertions.

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Solution Summary

This gives the differences between Cost accounting and financial accounting

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Cost accounting is providing information, which is helpful in monitoring and evaluating management performance. The information mainly pertains to the performance of the divisions/subunits of business. Its very detailed in nature and goes beyond bookkeeping. This figure can be used to make advantageous decisions concerning rates, prices, effect on operating costs and profits. Break-even analysis is especially useful when considering volume and plant expansion. If the firm is to avoid losses, its sales must cover all costs?those that vary directly with production and those that do not change as production levels change. It is also ...

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