Cost Accounting = Management Accounting?

The term Cost Accounting and Management Accounting are often used interchangeably. It is not correct to do so.
Cost Accounting is part of and provides source data for Management Accounting.

Cost Accounting is used to measure:
- Cost of goods or services.
- Cost of a department or business unit.
- Revenues earned and profitability of a product, service, department, organization in total.
- Selling price.
- Value of inventories of goods (raw materials, work in progress, finished goods).
- Future cost of goods and services.

Cost Accounting system can be applied to administration, selling and distribution, research and development and all other departments and functions.

Management Accounting information is used for planning, control and decision making.

(View more: Financial Accounting vs Management Accounting).

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