Oral Flashcards
1
Q
What is the difference between cost accounting and management accounting
A
Cost accounting: main function is cost accumulation and allocation to determine cost values
- Prevents business from incurring cost beyond budget
- Narrow scope
- Quantitative
- One of the subsets of management accounting
Management accounting: provide information (including cost information) to the members of the management for decision-making purposes.
- Big picture of how management should strategize
- Internal use
- Broad scope
- Qualitative and quantitative
