Cost accounting and Management accounting both have the same objectives of helping the management in planning, control and decision making. Both are internal to the organisation and use common tools and techniques . Inspite of these similarities there are following differences:
Difference Between Cost Accounting And Management Accounting
|Cost Accounting provides a base for management accounting.
|Management Accounting is derived from both cost accounting and financial accounting.
|Cost Accounting is helpful in collecting costing data for the management.
|It has a greater degree of relevance and objectivity as the management accountant has a clear idea of the types of costs and items requiring analysis and states the specific problems of business.
|Cost Accounting has standard costing, variable costing, break even analysis etc. as the basic tools and techniques.
|Management Accounting has funds and cash flow statements, ratio analysis along with all tools and techniques of cost accounting.
|Cost Accounting does not include financial accounting, tax planning and tax accounting.
|Management Accounting includes financial accounting, cost accounting, tax planning and tax accounting.
|Cost accounting concerned with short term planning.
|Management Accounting concerned with short term and long term planning and uses like sensitivity analysis, probability structure etc.
|Cost accounting merely assist the management in its functions.
|Management Accounting assists and evaluates the management performance.
|Cost Accounting is historical in its approach.
|Management Accounting is futuristic in its approach.
|Cost Accounting can be installed without management accounting.
|Management Accounting needs financial and cost accounting as its base for its installation.