Answer»
- The scope of management accounting is broader than that of cost accounting.
- Both the accounting streams are not a legal requirement.
- Cost accounting provides only cost INFORMATION for managerial use whereas management accounting provides all types of accounting information i.e., cost accounting as WELL as financial accounting information.
- In Cost accounting, the main emphasis is on cost ascertainment and cost control whereas in management accounting the main emphasis is on decision-making.
- The various techniques used by cost accounting are standard costing, budgetary control, marginal costing and cost-volume-profit ANALYSIS, uniform costing and inter-firm COMPARISON, etc. whereas management accounting ALSO uses these techniques but also uses techniques like ratio analysis, funds flow statement, statistical analysis etc.
- Cost Accounting is a part of Management Accounting whereas Management accounting is an extension of managerial aspects of cost accounting with the ultimate intention to protect the interests of the business.
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