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.