Difference Between Cost Accounting and Management Accounting

What is Cost Accounting?

Cost accounting is an accounting system that aspires to capture an enterprise’s costs of manufacturing by evaluating the input costs of each step of manufacturing as well as fixed costs, namely, depreciation of capital equipment. Cost accounting will initially compute and document these costs separately, then analyse input outcomes to output or actual outcomes to assist the enterprise’s management in computing financial accomplishment.

What is Management Accounting?

Management Accounting refers to the outlining of financial and non-financial data for the utilisation of management of the enterprise. It is also known as managerial accounting. The data furnished is useful in outlining budgeting, forecasting plans, policies and strategies, evaluating the performance and making comparisons of the management.

This article is a ready reckoner guide for all the students to learn the Difference between Cost Accounting and Management Accounting :

Basis Cost Accounting Management Accounting
Meaning Cost accounting is an accounting system that aspires to capture an enterprise’s costs of manufacturing by evaluating the input costs of every step of manufacturing as well as the fixed costs, namely, depreciation of capital equipment. Management Accounting refers to the outlining of financial and non-financial data for the utilisation of management of the enterprise. It is also known as managerial accounting.
Data type Quantitative Both Quantitative and Qualitative
Scope Focused on distribution, allocation, determination and accounting factors of the cost Convey (impart) and effect factor of the cost
Objective Determined in cost production Furnishing data to the managers to fix goals and anticipate strategies
Specific procedure Yes No
Planning Short term planning Both Short and long term planning
Recording Records both past and present data Focuses more on scrutinizing for future projects
Interdependency Can be installed without Management accounting Cannot be installed without cost accounting

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