Key Differences between Cost Accounting and Management Accounting:

 Definition: Cost accounting deals with the collection, recording, classification, ascertaining,
and analysis of the information and data related to the costs of production and operations;
while management accounting deals with the collection, recording, classification, analysis,
and presentation of data and information related to the quantitative and the qualitative
aspects pertaining to the activities of an organization.
 Focus: The primary focus of cost accounting is to accurately record the costs of the
transactions or activities, and present cost statements; while the primary focus of
management accounting is to help the management in decision making.
 Objective: Objective of cost accounting is reducing or controlling costs; while objective of
management accounting is to help the management of the company in decision making,
planning, and controlling. In other words, effective and efficient performance of an
organization is the objective of management accounting.
 Nature: Cost accounting is both historical and futuristic as it records historical transactions
which help in estimating future costs; but management accounting is futuristic as it is
mainly related with planning and forecasting.
 Coverage: Cost accounting covers typically the transactions, records and statements
related with costing and quantitative aspects; while management accounting mainly
covers qualitative and quantitative aspects.
 Scope: The scope of cost accounting is narrow as it is concerned with costing aspects; while
the scope of management accounting is wider comparatively as it covers financial
accounting, taxation, planning besides cost aspects in some respects.
 Level of Depth and Detail: Cost accounting takes an in-depth look at various details related
to the cost of production and operations; while management accounting generally takes a
top level view of the overall activities of an organization.
 Type of Data and Information: Cost accounting is concerned with the quantitative type of
data and information; but management accounting is concerned with both the qualitative
as well as quantitative type of data and information. It uses the information that may
usually not be expressed in terms of money.
 Sources of Data: Cost accounting obtains the data of costs from financial accounting which
help in costing work; but management accounting obtains the data from both Cost
accounting and financial accounting.
 Performed by: cost accounting is performed by a qualified cost accountant with some
statutory powers in certain cases; while management accounting is performed by
management accountants or by others in some cases.
 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.
  Timing: Cost accounting is carried out on a somewhat regular basis; whereas
management accounting is usually carried out more as a periodic process.
 Necessity: Cost accounting is necessary for some organizations in their day-to-day
production related activities or routine operations; while management accounting is
optional in many cases and not necessary in the day-to-day operations of a firm.
 Dependence: Cost accounting does not depend on management accounting for its success
and effectiveness; but management accounting depends on cost accounting for its success
and effectiveness.
 Regulations: Cost accounting is governed by some cost accounting standards or
regulations; but management accounting is usually not governed by a specific and
stringent set of standards or regulations.
 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.
 Report Submission: Cost accounting reports are submitted to the management of the
organization as well as some other external authorities or regulators; but management
accounting reports are submitted to the internal management of the organization.

Product cost refers to the costs incurred to create a product. These

costs include direct labor, direct materials, consumable production
supplies, and factory overhead. Product cost can also be considered
the cost of the labor required to deliver a service to a customer.