Write the difference between cost accounting and management accounting.

The major differences between cost accounting and management accounting are as follows −

Cost accountingManagement accounting
  • It helps in taking decisions in cost computation, cost control, cost reduction.

  • Short term planning.

  • It has a very narrow scope

  • It measures quantitative.

  • It is a sub set of management accounting.

  • There is a specific procedure.

  • Historic informed is the basic in decision making.

  • Requires statutory audit.

  • It does not depend on management accounting.

  • It is used by management, shareholders and vendors.

  • It helps in taking effective decisions in business.

  • Short/long term planning.

  • It has much broader scope.

  • It measures both quantitative and qualitative.

  • It itself is a vast area.

  • There is no specific procedure.

  • Historic and predictive information is the basic in decision making.

  • No need of statutory requirement.

  • It depends on cost accounting and financial accounting.

  • It used for management.

Updated on: 25-Jul-2020


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