Differences Between Cost Accounting And Management Accounting

Differences Between Cost Accounting And Management Accounting

Main distinction between Cost Accounting and Management Accounting are as follows.

1. Cost accounting deals with ascertainment , allocation , apportionment accounting aspect of costs.Management accounting deals with the effect and impact of costs on the business.

2. Cost accounting provides a base for management accounting whereas management accounting is derived from cost accounting and financial accounting.

3. Cost accounting does not include financial accounting , tax planning and tax accounting. Management accounting includes financial and cost accounting , tax accounting and tax planning.

4. Cost accounting is concerned with short term planning. Management accounting is concerned with short range and long range planning.

5. Cost accounting merely assists the management with functioning.Management accounting assists and evaluates the management performance.

6. Cost accounting can be installed with management accounting but management accounting can not be installed without cost and financial accounting