Skip to content

CA Intermediate · Cost and Management Accounting · Cost Accounting Systems

In an integrated accounting system, where cost and financial records are kept in one set of books, which of the following is a feature of this system?

In an integrated system, cost and financial transactions are recorded in a single set of books, giving one profit figure. Because there are no separate cost and financial ledgers, no reconciliation of the two profits is required, unlike non-integrated systems.

  1. ASeparate cost ledgers are maintained and reconciled with the financial books through a control account
  2. BA reconciliation statement between cost profit and financial profit is a necessary requirement
  3. CCost and financial transactions are recorded in a single set of accounts, so no reconciliation of profits is neededCorrect
  4. DOnly the cost records are maintained, with the financial books prepared at the year end from them

Explanation

Under integrated accounting, one set of books records both cost and financial data, so there is only one profit figure. Reconciliation is needed only under non-integrated accounting, where option A and B describe separate sets of books.

Did you get it right without looking?

One question tells you little. A timed set on Cost Accounting Systems shows your real accuracy, how long you take and where you lose marks.

Practise Cost Accounting SystemsFree diagnostic mock

More Cost Accounting Systems questions