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

qualified and unqualified audit reportsdistinguish between costs and expenseseffectiveness of autocratic leadershipfii and fdififo method accountingwhy is trial balance prepareddecentralised structurepayback method disadvantagesdecentralisation advantagesbenefits of dematerialisationimpulse buying meaningaccounting ebitdifference between bearer cheque and order chequeaccounting for sales returnsdefinition of current liabilities in accountingdisadvantages of hedge fundsfull form of neft and rtgscost pull inflation definitiondebit the receiver credit the giver exampledisadvantages of brandingskimming the marketnormal goods vs inferior goodsmerits of globalizationunbilled revenue accounting treatmentmonopolistic firms examplesthe difference between accounts payable and accounts receivableadvantages and disadvantages of electronic fund transferfeatures of capital budgeting decisionadvantages and disadvantages of traditional bankingcontingent liabilities examplewhat are the advantages and disadvantages of mixed economyunearned revenue examplesasset revaluation journal entriesthe difference between socialism and capitalismdisadvantage of mixed economydisadvantages of activity based budgetingpure conglomerate mergertds full formwhat is the full form of tdscharacteristics of fmcgvertical takeoverformula roceadvantages and disadvantages of social marketingwhat are the advantages and disadvantages of globalisationadvantages and disadvantages of dictatorshipwhat is unsystematic riskconsignee meansdemerits of mixed economyunearned rental revenue ismeaning of fixed capitalnormal goods exampleswhat is direct and indirect quotationdebentures in hindiadvantages of loan syndicationmarket oriented pricing advantages and disadvantagesstrap option strategybenefits of ppfbank loan and bank overdraftadvantages and disadvantages of global warmingsystematic and unsystematic riskunclaimed dividendsdefinition of fixed capitallaw of diminishing marginal utility exampleadvantages and disadvantages of sales promotiondifference between income and substitution effectdisadvantage of globalizationdifferent types of crossing of chequessales promotion advantages and disadvantagesdisadvantage of social networkingbartering systemdiversifiable risk definitionhorizantal mergerhow to fill out a withdrawal slipscarce goods examplesconsignor consigneeinfosys company websitebenefits of ppfredeemable preference shares definitionassumption of diminishing marginal utilitypros of urbanizationwhat is the meaning of consigneedisadvantages of fifoadvantages of a takeover