Differences between Financial Accounting and Cost Accounting

Basis	Financial Accounting	Cost Accounting
Purpose	The purpose of the financial accounting is to provide information about the financial position and profit & loss position by keeping record of all financial transactions.	The purpose of cost accounting is to keep record of cost, to find out the cost of operation and to control the cost of operation.
Nature of record	In financial accounting the record of financial transactions are kept on a subjective manner. Or record are kept on the basis of the nature of expenditure.	In cost accounting the record are kept on an objective manner. Or the record are kept on the basis of the purpose of expenditure.
Emphasis	Financial accounting gives more emphasis to keep record of financial transactions.	Cost accounting gives more emphasis to control the cost.
Compulsion	Company act, income tax act and other legal act create compulsion to keep record of financial transactions.	Cost accounting is voluntary.
Classification of cost	In financial accounting costs are not classified.	In cost accounting costs are classified as direct cost, indirect cost, fixed cost, variable cost etc.
Period	In financial accounting report showing the result of business operation are prepared at the last of fiscal year.	Cost report are prepared as per the demand of the management.
Nature of information	It provides information about the company’s financial position.	It provide information about the company’s cost of operation.