Contrast on Cost Accounting and Management Accounting

Question

Write down a brief contrast on the term Cost Accounting and Management Accounting?

Answer 1

1) The scope of management accounting is wider than that of cost accounting.

2) Both the accounting brooks are not a lawful need.

3) Cost accounting offers only cost information for managerial employ while management accounting offers all kinds of accounting information that is, cost accounting in addition to financial accounting information.

4) In Cost accounting, the major importance is on cost ascertainment and cost control while in management accounting the major importance is on decision-making.

5) The different methods employed by cost accounting are budgetary control, standard costing, marginal costing and cost-volume-profit determine, uniform costing and inter-firm comparison, and so forth. While management accounting also employs these methods but also employs methods such as ratio determine, funds-flow statement, statistical determine and so on.

6) Cost Accounting is a component of Management Accounting while Management accounting is an addition of managerial characteristics of cost accounting with the final intention to preserve the interests of the business.