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.