INTRODUCTION (COST ACCOUNTING SYSTEM)

INTRODUCTION

• To operate business operations efficiently and successfully, it is necessary to make use of an appropriate accounting system. Such a system should state in clear terms whether cost and financial transactions should be integrated or kept separately (Non- integrated). 
• Where cost and financial accounting records are integrated, the system so evolved is known as integrated or integral accounting.
•  In case cost and financial transactions are kept separately, the system is called Non-Integrated Accounting or Cost Control System. 
• While non-integrated system of accounting necessitates reconciliation between financial and cost accounts, no reconciliation between two sets of accounts is required under integrated accounting.