Difference Between Cost And Management Accounting
The main dissimilarities or difference between cost accounting and management accounting can be expressed as follows:
1. Meaning
Cost Accounting: A process of collecting, analyzing and presenting cost information of different products, units, departments, process etc.
Management Accounting: A process of collecting and providing important financial and non-financial information to the management.
2. Purpose/Objective
Cost Accounting: To determine or ascertain the cost of products, services, process, units etc.
Management Accounting: To assist the management to make decision, setting goals, and making future plans.
3. Used Data
Cost Accounting: It is maintained on the basis of monetary data only.
Management Accounting: It uses both monetary and non-monetary data to make report.
4. Scope
Cost Accounting: Limited scope (concerned with cost only)
Management Accounting: Wider scope ( concerned with the data both cost and financial account)
5. Dependency
Cost Accounting: It does not depend on management accounting
Management Accounting: It depends on cost accounting
6. Planning
Cost Accounting: It focuses only on short-term planning
Management: It gives stress on long-term planning.
7. Procedure And Format
Cost Accounting: It follows specific rules, procedures and principles to maintain accounting system.
Management Accounting: It lacks specific rules, procedures and principles.
8. Nature
Cost Accounting: It considers both past and present data
Management Accounting: It is futuristic in nature and focus on future plans and policies.
Also Read:
Also Read:
9. Users/Audience
Cost Accounting: Both internal users ( management, directors and employees etc.) and external users (shareholders, government, creditors, customers etc). use the information provided by cost accounting.
Management Accounting: It is useful for management only.
10. Development
Cost Accounting: It is developed and practiced earlier than management accounting.
Management Accounting: It is recently developed branch of accounting.
Cost Accounting Vs Management Accounting (Comparison Chart)
I hope this post is helpful to understand the difference between cost accounting and management accounting and to make comparison between them.
Cost Accounting Vs Management Accounting (Comparison Chart)
Basis For Difference
|
Cost Accounting
|
Management Accounting
|
Introduction
|
Collecting, analyzing and presenting the cost of products or services
|
Collecting financial and non financial data and providing information to the management
|
Purpose
|
To ascertain the cost of specific product, unit or process
|
To provide information for planning and decision making
|
Data Collected
|
Monetary data
|
Both monetary and non monetary data
|
Scope
|
Limited
|
Wider
|
Dependency
|
Does not depend on management accounting
|
Depends on cost accounting
|
Helpful For
|
Short-term planning
|
Long-term planning
|
Specific Procedure And Format
|
Yes
|
No
|
Nature
|
Realistic
|
Futuristic
|
Users
|
Management, employees, shareholders etc.
|
Top level management
|
Development
|
Earlier than management accounting
|
Recently developed
|
I hope this post is helpful to understand the difference between cost accounting and management accounting and to make comparison between them.
