In four ways, compared and construct cost accounting and management accounting ?
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Feb 4
1. Purpose: Cost accounting focuses on determining and allocating costs to products or services, while management accounting focuses on providing information for decision-making and planning.
2. Audience: Cost accounting is primarily used by internal stakeholders such as managers and accountants within an organization, while management accounting is used by both internal and external stakeholders, including managers, investors, and creditors.
3. Timeframe: Cost accounting typically focuses on historical costs and is used to calculate the cost of goods sold and inventory valuation. Management accounting, on the other hand, focuses on future costs and uses techniques such as budgeting and forecasting to help managers make informed decisions.
4. Scope: Cost accounting is more specific and detailed, focusing on the cost of individual products or services. Management accounting has a broader scope, covering various aspects of an organization's operations, including financial performance, budgeting, and strategic planning.