What are the causes of difference in cost and financial accounts

      

What are the causes of difference in cost and financial accounts

  

Answers


Martin
(a) Difference in methods of stock valuation leading to different stock values

(b) Differences in method of depreciation leading to different amounts being charged to P & L.

(c) Over or under absorption of overheads in cost books leading to more or less being charged

(d) National charges in cost books i.e. expenses which have not been incurred but in cost books
they are charged.

(e) Items of purely financial income and expenditure appearing in financial books only e.g.
dividends, discounts, interests etc.
marto answered the question on February 26, 2019 at 09:33


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