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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