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How cost accounting is differentiated from management accounting?

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Question ajoutée par Ahmad Tariq Bhatti , Chief Financial Officer , Costra Group
Date de publication: 2016/08/15
Attiquah Rahim
par Attiquah Rahim , General Manager Operations , Best Buy Trading

Cost accounting is usually used in mfg or after sale warranties and such.  Managerial accounting encompasses every day transactions and is usually used in the service industry.

Raqeeb Ullah
par Raqeeb Ullah , production manager , ANS foods products lahore

Key Differences Between Cost Accounting and Management Accounting
  1. The accounting related to the recording and analyzing of cost data is cost accounting. The accounting related to the producing information which is used by the management of the company is management accounting.
  2. Cost Accounting provides quantitative information only. On the contrary, Management Accounting provides both quantitative and qualitative information.
  3. Cost Accounting is a part of Management Accounting as the information is used by the managers for making decisions.
  4. The primary objective of the Cost Accounting is the ascertainment of cost of producing a product, but the main objective of the management accounting is to provide information to managers for setting goals and future activity.
  5. There are specific rules and procedure for preparing cost accounting information while there is no specific rules and procedures in case of management accounting information.
  6. The scope of Cost Accounting is limited to cost data however the Management Accounting has a wider area of operation like tax, budgeting, planning and forecasting, analysis, etc.

 

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