Differences Between Management and Cost Accounting

Though Management accounting uses the tools of cost accounting like standard costing, marginal costing etc…and many people think that both cost and management accounting are same which is not the case because there are many differences between the two, here are some of them –

1. Cost accounting is concerned with historical cost that is the costs which have been already incurred while management accounting is concerned with forecasting of the costs and hence it looks into future unlike cost accounting.

2. The objective of cost accounting is to ascertain the costs and control it while the objective of management accounting is to provide management all information as and when required by them so that they can take right decisions at right time.

3. Cost accounting is done for internal parties like top management, owners as well as external parties like creditors, employees, government, While management accounting is done for top management only.

4. Cost accounting was evolved many years back and it is limited in its scope while management accounting is still evolving but its scope is much wider than that of cost accounting because it uses along with cost accounting other principals of subjects like statistics, economics etc…

4 comments… add one
  • vidya. h.r

    it is too good. i learned a lot from it.

  • greatbob bob

    cost accounting is prepared only for internal use not for external use

  • aparnapraveen

    Thanks. It is very useful for me….


    Very useful to the public

Leave a Comment

Related pages

accounting full disclosure principledistinction between capital and revenue expendituredifference between direct cost and indirect cost with exampledifference between an operating lease and a finance leasesteps on how to withdraw money from atmfull form of cpiauthocratic leadershipwhat is clr in bankingdifference between vertical and horizontal analysismerits and demerits of atmadvantages and disadvantages of communismmerit and demerit of plasticimplicit and explicit costadvantages and disadvantages of job analysisadvantages and disadvantages of command economycash reserve ratio statutory liquidity ratioadvantages and disadvantages of borrowing money from a bankadvantages and disadvantages of borrowing money from a bankfmcg long formmeaning of wholesale bankingwhat is the lifo methoddefine mixed economy in economicstds full formadvantages of planned economywhat is the meaning of traditional economyexample of skimming pricingautocratic leadershorizontal analysis of financial statementdistinguish between job costing and process costingthe conservatism conceptadvantages and disadvantages of a joint venturedisadvantages of cost accountingnon diversifiable riskdisadvantages of factoringdirect quotation currencyaccounting and economic profitadvantages and disadvantages of using a debit cardrigid cost plus pricingexplicit cost examplefeatures of capitalism socialism and mixed economysocialist economy advantagesdifference between unqualified and qualified audit reportaccelerated method of depreciationlong form of micrnondurable goods examplesadvantages and disadvantages of capital budgeting techniquesexamples of liability accountslimitations of capital budgetinginferior good vs normal goodinvestment appraisal methods advantages and disadvantagesautocratic leadershipcost push inflation examplesentry of prepaid expensesunsystematic definitionsalary payable journal entryhorizontal integration advantages and disadvantagesgoodwill journal entryat par chequescountries with centrally planned economyexamples of securitizationfinal goods vs intermediate goodsadvantages of mergers and acquisitionsadvantages of junk bondsbenefits of ppfcharacteristics oligopolywhat is the meaning of bearer chequefunctions of derivatives marketwhat is a normal good and an inferior goodcost oriented pricing methodsadvantages of decentralisationwhat are the advantages of capitalismskimming examplesfinancial management advantages and disadvantagesdifference between implicit cost and explicit costadvantages and disadvantages of borrowing money from a bankadvantages of trading internationallytypes of bank guaranteesecs clearingofs in stock market