Difference between Cost Accounting and Management Accounting

Difference between Cost Accounting and Management Accounting 

 Cost Accounting Vs Management Accounting 

1. Meaning :- cost accounting is a branch of accounting focused on recording, analysing and managing the cost incurred by a business to enhance it's efficiency and profitability. Whereas Management accounting involves the use of financial information and analysis to inform decision-making within a organisation.

2. Scope :- It has a limited scope to provide cost information only whereas management Accounting has brothers scope and provides all types of information.

3. Statutory requirements:- In cost accounting, cost records are compulsory to be prepared in case of certain industries are companies. Whereas management accounting is voluntary.

4. Data base :- Cost accounting is based on data derived from financial accounting. Whereas management accounting is based on data derived from cost accounting, financial accounting and other resources.

5. Emphasis:- cost accounting Emphasis is on cost Ascertainment and cost control whereas management Accounting emphasis is on planning, controlling and decision making.

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