Management Vs Cost Accounting - Accounting Basics

What is the difference between Management Accounting and Cost Accounting?

The data is collected from cost accounting and financial accounting by management accounting. The data is then analyzed and interpreted and the reports are prepared by providing necessary information to the management by management accounting.

Cost accounting prepares the cost books from the data collected from financial accounting.

The difference between management and cost accounting are as follows:

Cost Accounting
Management Accounting
Cost accounting assists the management in cost control and decision making.
Management accounting provides necessary information to the management at all the stages such as planning, controlling, performance evaluation, decision-making etc.
The quantitative cost data that can be measured in monetary terms is used y cost accounting.
Quantitative and qualitative data is used by management accounting. The data which cannot be measured in terms of money is also considered.
Cost accounting primarily involves in determining the cost and the cost control.
Management accounting primarily involves in efficient and effective performance of an organization.
Success of cost accounting does not depend upon management accounting system.
Success of management accounting depends on sound financial accounting system and cost accounting systems of a concern.
The base for cost accounting is the cost-related data from the financial accounting.
The base of management accounting is the data from cost accounting and financial accounting.
Provides future cost-related decisions based on the historical cost information.
Provides historical and predictive information for future decision-making.
The reports of the cost management are used by the management, shareholders and creditors.
The reports of the management accounting are exclusively meant for management.
Principles of cost accounting are used.
Principals of cost accounting and financial accounting are used.
Statutory audit of the cot accounting is required in some instances.
No statutory requirement of audit for reports.
Only cost-related data is used by cost accounting.
Financial accounting data and cost accounting data is used by management accounting.

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