Distinguish between Cost Accounting and Management Accounting


Distinguish between Cost Accounting and Management Accounting


The main objective of cost accounting is to ascertain and control the cost of products or services. The function of management accounting is to provide information to management for efficiently performing the functions of planning, directing, and controlling.


Cost accounting is based on both historical and present data, whereas management According deals with future projections on the basis of historical and present cost data.

Principles and Procedures 

Established procedures and practices are followed in cost accounting. No such prescribed practices are followed in Management accounting. The analysis is made and the resulting conclusions are presented in reports as per the requirements of the management.

Data Used

Cost accounting uses only quantitative information whereas management accounting uses both qualitative and quantitative information.


Management accounting includes,financial accounting, cost accounting, budgeting, tax planning and reporting to management, whereas cost accounting is concerned mainly with cost ascertainment and control.