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    What Is Cost Reconciliation Statement?

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    mahendrabpatel
    Cost reconciliation statement accounts reconcile the differences between profits reported in cost accounts versus financial accounts. When a company uses separate cost and financial accounting systems, the profits reported may differ. A cost reconciliation statement is prepared to identify the causes of differences and make adjustments to match the net profit or loss between the two sets of books. It records the profits from cost and financial accounts and reconciles them by making adjustments for items causing disagreement between the results. In short, the cost reconciliation statement reconciles the profit/loss reported in cost accounts with that of the financial accounts.

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    What Is Cost Reconciliation Statement?

    Uploaded by

    mahendrabpatel
    66 views2 pages
    Cost reconciliation statement accounts reconcile the differences between profits reported in cost accounts versus financial accounts. When a company uses separate cost and financial accounting systems, the profits reported may differ. A cost reconciliation statement is prepared to identify the causes of differences and make adjustments to match the net profit or loss between the two sets of books. It records the profits from cost and financial accounts and reconciles them by making adjustments for items causing disagreement between the results. In short, the cost reconciliation statement reconciles the profit/loss reported in cost accounts with that of the financial accounts.

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    Reconciliation Statement

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    Cost reconciliation statement accounts reconcile the differences between profits reported in cost accounts versus financial accounts. When a company uses separate cost and financial accounting systems, the profits reported may differ. A cost reconciliation statement is prepared to identify the causes of differences and make adjustments to match the net profit or loss between the two sets of books. It records the profits from cost and financial accounts and reconciles them by making adjustments for items causing disagreement between the results. In short, the cost reconciliation statement reconciles the profit/loss reported in cost accounts with that of the financial accounts.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    66 views2 pages

    What Is Cost Reconciliation Statement?

    Uploaded by

    mahendrabpatel
    Cost reconciliation statement accounts reconcile the differences between profits reported in cost accounts versus financial accounts. When a company uses separate cost and financial accounting systems, the profits reported may differ. A cost reconciliation statement is prepared to identify the causes of differences and make adjustments to match the net profit or loss between the two sets of books. It records the profits from cost and financial accounts and reconciles them by making adjustments for items causing disagreement between the results. In short, the cost reconciliation statement reconciles the profit/loss reported in cost accounts with that of the financial accounts.

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    What is Cost reconciliation statement accounts?

    Preparation of cost reconciliation statement

    What is Cost reconciliation


    statement?
    What is Cost reconciliation statement accounts?
    Preparation of cost reconciliation statement
    Introduction
    A manufacturing concern may adopt either inter graded accounting system or non-
    integral accounting system. Under integrated account ting system, only one set of books
    is maintained to record both costing and financial transaction, therefore, under this
    system, both financial accounts

    and cost accounts give similar results. But in non-integral accounting system, separate
    books are maintained for costing and financial transactions, which may exhibit different
    result i.e. profit or loses. In other words, when cost accounts and financial accounts are
    maintained independently by a concern, the profit or loss shown by the cost accounts
    may not reconcile the profit or losses shown different by cost account and financial
    accounts by preparing a statement called 'cost reconciliation statement'.

    Meaning of cost reconciliation


    statement
    A statement which is prepared for reconciling the profit between financial and cost
    account is known's as cost reconciliation statement statement. A cost reconciliation
    statement is a statement recording the profit or losses shown by the cost accounts and
    financial account. It is a statement where the causes for the difference in net profit or
    net loss between cost and financial accounts are established and suitable adjustments
    are made to remove them. In other words, cost reconciliation statement is a statement
    prepared for the purpose of reconciling or agreeing the result (i.e. Net profit or net loss)
    of financial accounts with the results of cost accounts by making suitable adjustment for
    the items responsible for the disagreement. In short, it is the statement through which
    reconciliation or agreement between the results (profit or losses) of cost account and
    financial account is affected.

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