Management accounting collects data from cost accounting and financial accounting. Thereafter, it analyzes and interprets the data to prepare reports and provide necessary information to the management.
On the other hand, cost books are prepared in cost accounting system from data as received from financial accounting at the end of each accounting period.
The difference between management and cost accounting are as follows:
|S.No.||Cost Accounting||Management Accounting|
|1||The main objective of cost accounting is to assist the management in cost control and decision-making.||The primary objective of management accounting is to provide necessary information to the management in the process of its planning, controlling, and performance evaluation, and decision-making.|
|2||Cost accounting system uses quantitative cost data that can be measured in monitory terms.||Management accounting uses both quantitative and qualitative data. It also uses those data that cannot be measured in terms of money.|
|3||Determination of cost and cost control are the primary roles of cost accounting.||Efficient and effective performance of a concern is the primary role of management accounting.|
|4||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.|
|5||Cost-related data as obtained from financial accounting is the base of cost accounting.||Management accounting is based on the data as received from financial accounting and cost accounting.|
|6||Provides future cost-related decisions based on the historical cost information.||Provides historical and predictive information for future decision-making.|
|7||Cost accounting reports are useful to the management as well as the shareholders and creditors of a concern.||Management accounting prepares reports exclusively meant for the management.|
|8||Only cost accounting principles are used in it.||Principals of cost accounting and financial accounting are used in management accounting.|
|9||Statutory audit of cost accounting reports are necessary in some cases, especially big business houses.||No statutory requirement of audit for reports.|
|10||Cost accounting is restricted to cost-related data.||Management accounting uses financial accounting data as well as cost accounting data.|