Saturday 11 June 2011

Cost accounting vs. Management Accounting:


Cost Accounting is subset of Financial Accounting and Management Accounting.  Determination of product cost is the function of Management Accounting.
Distinction between Cost Accounting and Management Accounting:
Sl. No.
Cost Accounting
Management Accounting
01
Cost Accounting is a technique or Method for determining the cost of a project, process or product.
Management Accounting is the process of identification, measurement, accumulation, analysis, preparation and communication.
02.
Cost Accounting is confined to the area of product costing, cost and pricing.
The objective of Management Accounting is to have an information pool which will include any and all information that Management may need.

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