The information provided by it is helpful in making policies and strategies, budgeting, forecasting plans, making comparisons and evaluating the performance of the management.
Cost accounting basically focuses on the quantitative aspects. Status: Cost accounting is constrained in status with limited area of influence; while management accounting has status of priority and a larger area of influence.
Hence cost accounting is a part of financial accounting. Management or managerial accounting includes a lot of the same information, but emphasizes analysis more, to help management make informed decisions. The scope of Cost Accounting is limited to cost data however the Management Accounting has a wider area of operation like tax, budgeting, planning and forecasting, analysis, etc.
Audit Requirement: In some cases, the statutory audit of the cost accounting reports is needed; but the statutory audit of the management accounting reports is typically not needed.
Unlike the accountant who prepares your balance sheet and income statement, cost and management accountants don't show their work to outsiders. Managerial accounting, however, places more emphasis on analyzing the figures and making recommendations: What is the breakeven point where sales revenue will equal the costs?
The cost of product or service can be fixed with the help of cost accounting records. It is developed before management accounting. The presentation may differ between one company and another, whereas GAAP-regulated material will always be uniform. There is no such analysis and interpretation of available accounting information under cost accounting system.
Is a given market worth entering? The reports produced by management accounting are used by the internal management managers and employees of the organisation, and so they are not reported at the end of the financial year.