In this post, we will learn in detail about the top 7 differences between cost accounting and costing, and much more.
Both cost accounting and costing have grown into a key practice for business. Many people believe cost accounting and costing are the same, but both are not the same. There are many differences between cost accounting and costing.
The top 7 differences between cost accounting and costing are as follows:
Cost Accounting Vs Costing
|Sl No||Cost Accounting||Costing|
|1||Cost accounting is an accounting branch that determines the costs incurred within a company, by recording, analyzing, forecasting, and reporting cost data.||Costing is a process of the assertion of product prices and costs.|
|2||Cost accounting is concerned with accounting for costs. It, therefore, presupposes the establishment of an accounting system.||Costing is related to the techniques and processes used to determine the cost of goods produced or services rendered.|
|3||It involves accounting for costs.||This does not require formal accounting.|
|4||It requires the application of accounting principles.||It doesn’t require the application of accounting principles.|
|5||It covers a much wider field.||It is an essential component of cost accounting.|
|6||This involves an analysis of the costs of preparing the necessary information.||It involves the classification of expenditure on the basis of cost elements.|
|7||It is an important management tool for determining future planning and budgets.||It is not used to make decisions.|
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