Management Accounting

Difference Between Cost Accounting And Management Accounting

Difference Between Cost Accounting And Management Accounting – Management Accounting and Cost Accounting are interrelated to each other. Cost accounting involves a study of those concepts, tools and techniques which helps us in ascertaining and analysing the cost whereas, management accounting facilitates the managerial process of decision making. The following are the dinferences between management accounting and cost accounting.

Difference Between Cost Accounting And Management Accounting

Sr.NoBasisCost AccountingManagement Accounting
1ObjectiveThe main objective of cost accounting is to determine and control the cost.The main objective of managment accounting is to provide information to the management for taking managerial decisions
2Nature of DataThe data under cost accounting usually relates to the past.The data under management accounting relates to the planing of future and decision making.
3ScopeThe scope of cost accounting is narrow as it only records information related to cost.It has wide scope as it include cost accounting, financial accounting, tax planning, reporting, etc.
4Based on PrinciplesIn cost accounting, certain principles are followed for recording, classifying and determination of costs.It is not based on specified rules and principles.
5Quantitative and Qualitative InformationUnder cost accounting, only quantitative information is used.Under management accounting both quantiative and qualitative information are used.
6Voluntary and CompulsoryAccording to Companies Act, cost accounting is compulsory for some of the business concerns.Management accounting is notcompulsory i.e. it is voluntary. It is based on the desire of management.
7AuditingAuditing has been made compulsory in cost accounting.The auditing of managemen accounting is not compulsory.

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