Answer to Question #200563 in Finance for aman

Question

How are management accounting and cost accounting related?

Answer 1

Management accounting is concerned with received data from financial accounting and cost accounting. It uses both financial and cost accounting data.

Cost accounting focuses on cost-related data.

Both cost accounting and management accounting need essential knowledge of basics and principles of accounting. They both use similar techniques and procedures of accounting, analysis and computation and provide relevant data that helps in management and decision making.

The data and statements provided by both cost accounting and management accounting are generated with reference to a certain period. They are mainly used for internal management of an organization's employees.