Causes of differences between reported profits in cost accounting and in financial
accounting under the non-integrated cost accounting system.
(i). Pure financial charges e.g. fines and penalties, interest, discount on shares, loss of
investments.
(ii). Pure financial income e.g. rental income and dividends received.
(iii). Appropriation of profit like taxes and preliminary expenses.
(iv). Pure cost items e.g. notional rent on premises owned and interest on capital
(v). Under and over absorbed overheads.
(vi). Different methods of valuing stocks.
marto answered the question on February 19, 2019 at 12:32
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