The distinction between cost accounting and management accounting may be made on the following points:
|
 Basis |
Cost Accounting |
Management Accounting |
| 1. Scope | Scope of cost accounting is limited to providing cost information for managerial uses. | Scope of management accounting is broader than that of cost accounting as it provides all types of information, i.e., cost accounting as well as financial accounting information for managerial uses. |
| 2. Emphasis | Main emphasis is on cost ascertainment and cost control to ensure maximum profit. | Main emphasis is on planning, controlling and decision – making to maximize profit. |
| 3.Techniques
employed |
Various techniques used by cost accounting include standard costing and variance analysis, marginal costing and cost volume profit analysis, budgetary control, uniform costing and inter-firm comparison, etc. | Management accounting also uses all these techniques used in cost accounting but in addition it also uses techniques like ratio analysis, funds flow statement, statistical analysis operations research and certain techniques from various branches of knowledge like mathematics, economics, etc. which so ever can help management in its tasks |
| 4. Evolution | Evolution of cost accounting is mainly due to the limitations of financial accounting | Evolution management accounting is due to the limitations of cost accounting. In fact, management accounting is an extension of the managerial aspects of cost accounting. |
| 5. Statutory
requirements |
Maintenance of cost records has been made compulsory in selected industries as notified by the Govt. from time to time. | Management accounting is purely voluntary and its use depends upon its utility to management. |
| 6.Data base | It is based on data derived from financial accounts | It is based on data derived from cost accounting, financial accounting and other sources. |
| 7.Status in
organization |
In the organizational set up, cost accountant is placed at a lower level in hierarchy than the management accounting | Management accounting is generally placed at a higher level of hierarchy than the cost accounting |
| 8.Installation | Cost accounting system can be installed without management accounting | Management accounting cannot be installed without a proper system of cost accounting. |
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