Financial Accounting Limitations Which Led to Develop Cost Accounting

Financial Accounting System discloses the net result but not discloses the exact P/L causes of each job & contract

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Inflation causes are not revealed by Financial Accounting

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Financial Accounting system does not provide the cost data for fixation of product price

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Financial Accounting not provide cost data,  So we unable to acess cost data by departments, process & products

Financial Accounting not provide managerial decission like introduction of new products & replacement of labour etc.

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Financial Accounting not provide any standard to know the use of material , labour and overhead

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