Difference between Integrated and Interlocking System
Difference
between integrated and interlocking system can be explained in term of book
keeping requirements, duplication of data, resources allocation, and manual
book keeping.
1.
Scope
Interlocking
system deals with the cost accounting aspect of the business, where integrated
system both financial and cost aspect are dealt.
2.
Book of Account
In interlocking system two separate set
of account are maintained for cost accounting and financial reporting. While in
integrated system one set of book of account is maintained.
3.
Duplication of Data
In interlock system, there is
duplication of data and too much data is processed and maintained within organization.
In integrated system there is no duplication of data.
4.
Resources Allocation
Interlocking system requires of
consumes more resources than integrated system. These resources can be categorized
in term of employee time, cost of processing the data etc.
5.
Manual Book Keeping
Interlocking system is only
maintained in manual books of account. In modern world, there is no concept of
interlocking system, as computerized environment is based on integrated
concept.
