https://padlet.com/hkawshala/Costing Cost and Management Accounting Forum en-us 2018-10-01 12:45:14 UTC 2023-07-26 08:03:02 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Diskette.png hkawshala https://padlet.com/hkawshala/Costing/wish/287566507 Colin Drury :]]> 2018-10-01 12:52:25 UTC https://padlet.com/hkawshala/Costing/wish/287566507 hkawshala https://padlet.com/hkawshala/Costing/wish/287567354 Charles :]]> 2018-10-01 12:53:57 UTC https://padlet.com/hkawshala/Costing/wish/287567354 hkawshala https://padlet.com/hkawshala/Costing/wish/287584155 2018-10-01 13:21:42 UTC https://padlet.com/hkawshala/Costing/wish/287584155 hkawshala https://padlet.com/hkawshala/Costing/wish/287584832 2018-10-01 13:22:33 UTC https://padlet.com/hkawshala/Costing/wish/287584832 kalaniperera0528 https://padlet.com/hkawshala/Costing/wish/287666515 The difference between the two is crucial because the users of both the systems are the internal management of the organization.
 Cost Accounting is a method of collecting, recording, classifying and analysing the information related to cost. The information provided by it is helpful in the decision-making process of managers.
Management Accounting refers to the preparation of financial and non-financial information for the use of management of the company. The information provided by it is helpful in making policies and strategies, budgeting, forecasting plans, making comparisons and evaluating the performance of the management. The reports produced by management accounting are used by the internal management (managers and employees) of the organisation, and so they are not reported at the end of the financial year.

Key Differences Between Cost and Management Accounting

1.The accounting related to the recording and analysing of cost data is cost acct. The accounting related to the producing information which is used by management of the company is management acct.

2.Cost Acct provides quantitative information only. On the contrary Management Acct. provides both quantitative and qualitative information.

3.Cost acct. is part of Management Acct. as the information is used by the management for making decisions.

4.The primary objective of Cost Acct. is the ascertainment of cost of producing a product, but the main object of the management acct. is to provide information to managers for setting goals and future activity.

5.There are specific rules and procedure for preparing cost acct. information while there is no specific rules and procedures in case of management acct. information.

6.The scope of Cost Acct. is limited to cost data however the Management Acct. has a wider area of operation like tax, budgeting, planning and forecasting, analysis, etc.

7.Cost Acct. is related to ascertainment, allocation, distribution and accounting face of cost. On the flip side, management acct. is associated with impact and effect aspect of cost.

8.Cost Acct. stresses on short-range planning, but management acct. focuses on long and short range planning, for which it uses high-level techniques such as probability structure, sensitive analysis etc.

9.While management acct. can’t be installed in the absence of accounting, cost acct. has no such requirement, it can be installed without management acct.


Similarities

1.Branch of Accounting
2.Helpful in decision-making
3.Prepared for a particular period.
4.Not reported at the end of the financial year.


]]> 2018-10-01 15:12:41 UTC https://padlet.com/hkawshala/Costing/wish/287666515 navodasadapani1 https://padlet.com/hkawshala/Costing/wish/305168483 2018-11-16 09:46:26 UTC https://padlet.com/hkawshala/Costing/wish/305168483