Cost Accounting

9

Reconciliation of Cost and Financial Accounts

CHAPTER OUTLINE

1. Introduction

2. Reasons for Disagreement in Profit

Chapter Summary

Key Formulae

Exercise for Your Practice

Discussion Questions

Problems

LEARNING OBJECTIVES

After reading this chapter, you will be able to understand:

• The reasons for the difference in the profit or loss as per financial and cost accounts;
• The need for reliability of cost accounts;
• To coordinate the activities of financial and cost accounts;
• The method of reconciling the cost and financial profits;
• The circumstances that lead to the difference between cost and financial profits;
• Solving the sums when any of the profits (cost/profit) is given;
• Solving the sums when both the profits are given; and
• Solving ...