Difference between Cost Accounting  and Management Accounting

👉Objective:

The objective of cost accounting is the ascertainment and control of cost of products or services. But the objective management accounting is to help the management in decision making, planning, control etc., This objective is achieved by furnishing relevant accounting information to the management.

👉Scope: 

Cost accounting deals primarily with cost data. But management accounting ,deals with both cost and revenue. It includes financial accounting and cost accounting, budgeting reporting to management and interpretation of financial data. Thus the scope of management accounting in wider than that of cost accounting.

 👉Data Used: 

  In cost accounting only those transaction which can be expressed in figures are taken only. The quantitative aspect is recorded in cost accounting. But management accounting uses both quantitative and qualitative information.

Nature: 

Cost accounting uses both past and present figures. But management accounting is concerned with the projection of figures for future. The policies and plans are prepared for providing future guidelines.

  However, cost accounting and management accounting are complementary in nature. Cost accounting furnishes detailed cost information. Management accounting analysis and presents the data in a more meaningful and informative manner. It helps the management to use the cost data effectively.