The correct answer is: A. reporting of cost
Cost accounting is a branch of accounting that focuses on the measurement, analysis, and reporting of costs. It is used to help businesses make informed decisions about pricing, production, and other areas. Financial accounting, on the other hand, is a branch of accounting that focuses on the preparation of financial statements for external users, such as investors and creditors.
The main difference between cost accounting and financial accounting is the purpose of the information that is being reported. Cost accounting information is used for internal decision-making, while financial accounting information is used for external reporting. As a result, cost accounting reports are often more detailed and specific than financial accounting reports.
In addition, cost accounting reports often use different methods of measurement and analysis than financial accounting reports. For example, cost accounting reports may use standard costs, while financial accounting reports use actual costs.
Finally, cost accounting reports are often prepared on a more frequent basis than financial accounting reports. This is because cost information is needed more frequently for internal decision-making than financial information is needed for external reporting.
Here is a brief explanation of each option:
- A. Reporting of cost
Cost accounting reports are used for internal decision-making, while financial accounting reports are used for external reporting. As a result, cost accounting reports are often more detailed and specific than financial accounting reports.
- B. Ascertainment of cost
Cost accounting uses a variety of methods to ascertain costs, including historical costs, standard costs, and budgeted costs. Financial accounting, on the other hand, uses historical costs to ascertain costs.
- C. Control of cost
Cost accounting information can be used to control costs by identifying areas where costs can be reduced. Financial accounting information is not used for cost control.
- D. Recording of cost
Cost accounting records costs in a variety of ways, depending on the purpose of the information. Financial accounting records costs in a standardized way, according to Generally Accepted Accounting Principles (GAAP).