| Purpose |
To determine, control, and reduce cost of production. |
To record financial transactions and prepare financial statements. |
| Users |
Used by internal management. |
Used by both internal and external stakeholders. |
| Time Focus |
Focuses on future costs for planning and control. |
Focuses on historical data for reporting. |
| Scope |
Narrow, focusing on cost data. |
Broad, covering all financial transactions. |
| Legal Requirement |
Not legally mandatory (except in some industries). |
Legally required under law and standards. |
| Accounting Standards |
Not bound by accounting standards strictly. |
Must comply with accounting standards (GAAP/IFRS). |
| Reporting Frequency |
As required by management (weekly/monthly). |
Usually annually or quarterly. |
| Format |
No fixed format; flexible for internal use. |
Follows standard format prescribed by law. |
