Question

Briefly discuss the relationship between cost accounting, management accounting, and cost management.

Answer 1

Cost accounting is the branch of accounting which involves classifying the cost data etc. Management accounting is concerned with financial as well as non financial information. It is also known as decision making accounting. Cost management, as the name suggest involves managing the cost of operating the business. It is only concerned with managing the expenses.

Cost accounting gives cost data to management from which they takes decision i.e. management accounting. Thereafter the cost data and decision are analysed from variance point of view i.e. cost management.