Difference Between Management Accounting and Cost Accounting

In the earlier articles we have understood about the Management Accounting and difference between Management Accounting and Financial Accounting. Today in this article let us try to understand difference between Management Accounting and Cost Accounting.

Difference between Management Accounting and Cost Accounting

Basis	Management Accounting	Cost Accounting
Meaning	Management Accounting refers to the accounting systems and techniques which help management to make decisions and fulfill its goals.	Cost Accounting is process which begins with the recording of the cost and ends with the preparation of the statistical data for the cost finding, cost control, ascertainment of profitability.
Function	Management Accounting is primarily concerned about the wider prospective of assisting management.	Cost Accounting is primarily concerned with the ascertainment of cost and profitability by control of cost using techniques of budgetary control and standard costing
Period	Management Accounting takes beyond one year for work out on future operating statements of firm or business	The Costing Accounting is concerned with the working of cost operating system
Scope	Management Accounting includes information system, i.e. Financial Accounting, Cost Accounting and other branches of accounting	Cost Accounting only deals with cost data or cost information
Decision Making	Management Accounting takes into account cost data as well as non cost factors during decision making  from various alternatives	Cost Accounting takes into account only the cost data during making decision from alternatives
Parties Interested	In management accounting only internal parties are interested.	In cost accounting information both external and internal parties are interested.
Interpretation	Management accounting takes into account financial and cost accounting data and analysis the data in the light of relevant information	Cost Accounting reports are based only on cost data.
Application	Management Accounting helps managements to strategize.	Cost Accounting helps to prevents expenses beyond budget.
Information	Management Accounting provides qualitative and quantitative information	Cost Accounting provides only quantitative information
Decision Making Nature	Management Accounting is historic and predictive in nature	Cost Accounting is historic in nature
Statutory Requirements	Management Accounting does not need any statutory requirements	Cost Accounting has a statutory requirement for big businesses.
Dependence	Management Accounting is dependent on Financial and Cost Accounting for successful implementation	Cost Accounting isn’t dependent on management accounting for successful implementation
Uses	Management Accounting is useful only for management	Cost Accounting is helpful for Management, Shareholders and Vendors.
Principles used	Management Accounting uses the principles of Cost Accounting and Financial Accounting	Cost Accounting uses the principles only of Cost Accounting
Format and Procedures	Management Accounting does not have any specific formats and procedures	Cost Accounting has specific formats and procedures
Evaluation	Management Accounting evaluates performance of management	Cost Accounting does not evaluates the performance of management
Existence	Management Accounting has came into existence very recently	Cost Accounting was developed prior to management accounting.
Information Details	Management Accounting takes a over view of overall activities of business or firm and provides insights	Cost Accounting deals with the in-depth information related to cost of production and operations.
Recording	Management Accounting stress more on future projections	Cost Accounting usually records past and present data.
Sensitiveness	Management Accounting is highly sensitive to management requirements or needs	Cost Accounting is not  sensitive to management requirements or needs