Difference between cost & managemt accounting, Study notes of Accounting

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_ Distinction between Management Accounting and Cost Accounting Following are the differences between management accounting and cost accounting: Cost Accounting Management Accounting 1. The purpose is to ascertain and control | 1. The purpose is to provide information to the cost of products or services. : management for planning, controlling and : decision making. 2. Includes only cost ascertainment and | 2. Includes financial accounting, cost accounting, control (limited scope). budgeting, tax planning and reporting to management (vast scope). 3. Uses only quantitative information. 3. Uses both qualitative and quantitative information. 4. Deals with cost. “ 4. Deals with both cost and revenue. 5. Based on both historical and current 5. Concerned. with transactions » relating to the data. = future. 6. Precedes management accounting. © 6. Starts where cost accounting ends.