## Cost Accounting Systems — Introduction
To run business operations efficiently, an appropriate accounting system is needed for recording cost and financial transactions. There are two methods of maintaining cost records.
### The two systems
| System | Meaning |
|---|---|
| Integrated (Integral) Accounting System | Cost and financial accounting records are merged into one set of books |
| Non-Integrated Accounting System (Cost Control System) | Cost and financial transactions are kept separately in two independent sets of books |
```
+-- Non-Integrated System (separate cost & financial records)
Company records --|
+-- Integrated System (combined cost & financial records)
```
### Consequence of keeping records separately
Because the Non-Integrated system maintains costing and financial records separately, it reports two different profit figures. These two profits must then be reconciled (covered in the reconciliation segment of the chapter).
### Structure of the chapter
The chapter is bifurcated into three segments:
1. Non-Integrated Accounting Systems
2. Integrated Accounting Systems
3. Reconciliation (of cost and financial profits)
### Key takeaway
Under an integrated system there is one profit figure (no reconciliation needed). Under a non-integrated system there are two profit figures that differ and must be reconciled.