How does cost accounting differ from financial accounting?

Cost accounting and financial accounting serve different purposes. Cost accounting focuses on internal reporting and is used by management to make informed business decisions. It emphasizes cost control and efficiency. Financial accounting, on the other hand, is aimed at external stakeholders like investors, creditors, and regulators. It involves preparing financial statements in accordance with accounting standards to present an overall picture of a company's financial health. You may also want to know what is cost accounting