Difference between cost and Management Accounting
Cost and Management accounting
are closely associated and linked with each other and both provides useful
information to management for performing management functions. Management accounting
has wider scope than cost accounting. Difference between cost and management accounting
is being explained below;
1. Cost Accounting
Cost accounting primarily
deals with the product cost and therefore Cost accounting provides useful
information for setting price, stock valuation, and cost of product.
2. Management Accounting
Management accounting
focuses on management information required for management function i.e. planning,
decision making, controlling. In Management accounting budget are prepared for
future planning, while variance are calculated for control purposes. Relevant costs
are considered for decision making purposes.
