Financial and cost accounting are the branches of accounting

Financial and cost accounting are the branches of accounting whose main aim is to provide information by recording the business transactions systematically and scientifically so that it may serve the purpose of the management for policy formulation and controlling and to provide necessary protection to the outsiders. Both are based on double entry system and their roles are supplementary. The ordinary trading account is a locked storehouse of most valuable information to which the cost system is the key. Financial accounting treats costs very broadly, while cost accounting does this much greater detail

Under Financial Accounting:

This reveals an apparently satisfactory profit of 300$ which represent 10% of Sales. However, the information is too general to be of great use of the management, who needs to know the profit or loss of each product so that policy decision can be made. With this end in view and assuming that three products A,B and C were manufactured, cost accounting records could reveal a position something like the following:

The statement clearly revels to management that product A and B are obtaining approximately 25% profit but the product C is Pulling down the total profit to 10%. Thus management may investigate thoroughly product C to find out possible economies or stop the production of product C.