Cost Accounting: It is a special branch of accounting which involves classification, accumulation, assignment and control of costs.
Management Accounting: Management accounting is a branch of accounting that collects and provides accounting, cost accounting, economic and statistical information to various managerial level of the organization to assist them in the performance of managerial functions and their evaluations.
Difference between Cost Accounting and Management Accounting
|Cost accounting is concerned with the ascertainment, allocation and distribution of costs.||Management accounting is concerned more with impact and effect aspect of costs.|
|The cost accountant places data in narrow perspective.||Management accountant places data in wider perspective.|
|Position of Cost accountant is lower than the position of management accountant in the organization hierarchy.||Position of Management accountant is higher than the position of cost accountant in the organization hierarchy.|
|The approach of cost accountant is narrower that management accountant as cost accountant only uses costing data.||The approach of Management accountant is wider that cost accountant as management accountant uses economic, statistical data along with costing data.|
|Techniques used in cost accounting are variable costing, break even analysis , standard costing etc.||Techniques used in Management accounting are cash flow, ratio analysis along with the techniques used in cost accounting.|
|Cost accounting does not include any other type of accounting.||Management accounting includes tax accounting, financial accounting along with cost accounting.|
|Cost accounting is more concerned with short-term planning.||Management accounting is equally concerned with both short-term and long term planning.|
|Cost accounting is mostly historical in its approach.||Management accounting is especially futuristic in its approach.|
|Cost accounting system can be installed without management accounting.||Management accounting system can not be installed without cost accounting system.|