What's the difference between retail accounting and cost accounting?
There are slight differences between retail accounting and cost accounting. Retail accounting tracks inventory based on the price of each item sold to customers. Cost accounting for retail tracks each item based on the total cost paid for purchased inventory. Of the two, cost accounting is considered more complicated since it tracks a variety of factors involved in obtaining inventory, such as shipping, production costs, and development costs. Due to the intricacies in its calculation, cost accounting is the more accurate method, however, it requires complex calculations. Retail accounting is easy to use and maintain while still providing accurate records.