Difference Between Cost Accounting and Management Accounting

Cost Accounting vs Management Accounting:

Cost accounting is that section of accounting which strives at generating data to manage operations with a view to maximizing profits and performance of the company, it is also termed control accounting. On the contrary, management accounting is that type of accounting which support management in planning and decision-making and hence known as decision accounting.

What is Cost Accounting?

It 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.

Also check: What is Cost?

What is Management Accounting?

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

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