Integrated and Interlocking Accounts

  • Roger Hussey
Part of the Macmillan Professional Masters book series (PRMA)


All business organisations, unless they are very poorly run, must keep some form of financial accounting system. With some organisations (such as limited companies), there are very strict legal requirements; even with a person doing business on their own account the tax man will expect to see some form of financial records. In addition to the financial accounts many firms will keep cost accounts. Many firms will therefore need to keep two sets of books:
  1. 1.

    A financial accounting system, for recording such items as the purchase of raw materials, payment of expenses and the revenue collected.

  2. 2.

    A costing system, so that the total production costs can be accumulated and allocated to cost units.

There are a number of connections between these two systems. When a company purchases materials and records the transaction in the financial accounting system, those materials will form part of the cost of the product in the cost accounting system.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Roger Hussey 1989

Authors and Affiliations

  • Roger Hussey
    • 1
  1. 1.Bristol Business SchoolUK

Personalised recommendations