Write the difference between cost accounting and management accounting.
The major differences between cost accounting and management accounting are as follows −
|Cost accounting||Management 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.
Published on 25-Jul-2020 07:00:36