What do you mean by Management Accounting and Difference Between Cost Accounting?
Meaning and Definition of Management Accounting
Management Accounting the provision of financial data and advice to a company for use in the organization and development of its business. – Oxford Dictionary
Any form of accounting which enables a business to be conducted more efficiently can be regarded as Management Accounting
Management Accounting is concerned with accounting information that is useful to management.
Management Accounting includes the methods and concept necessary for effective planning, for choosing amount alternative business actions and for control through the evaluation and interpretation of performances.
Such of its techniques and procedures by which accounting mainly seeks to aid the management collectively have come to be known as management accounting.
Management Accounting may be defined as the application of accounting techniques to the provision of information designed to assist all levels of management in planning and controlling the activities of the firm.
Difference Between Cost Accounting and Management Accounting
- Cost accounting has been defined as classifying transaction recording and appropriate allocation of expenditure for the cost of products or service
- By the help of the cost of accounting, management came to know how to cut unnecessary expenditure and to take future decision and also it is help to make decision.
- Cost accounting is not depending on management accounting.
- Cost accounting deal with cost primary data.
- The cost accounting measuring grid as quantitative
- It helps the management to take effective decisions about the business and make the policy.
- The aim of management accounting to get information form cost accounting and financial accounting and utilize of those information to make future policies to make an important decision.
- Management Accounting depend on both cost accounting and financial accounting to make a decision.
- Management Accounting measure both quantitative and qualitative.
- Its Considers the cost and revenue data, it’s a concept broader than cost accounting. It helps the management to prepare planning into action.