Administration is an activity as well as a field of study. Administration is often distinguished or divided into two major branches namely public administration and private administration. Public administration and private administration are juxtaposed to each other in terms of processes, nature and objectives.
Both of them are used by most of the organizations for better functioning. This creates an impression that both cost accounting and management accounting are same.
The differences between cost accounting and management accounting are of a fine nature and have minor nuances. Cost accounting basically focuses on the quantitative aspects. While management accounting uses a combination of quantitative aspects as well as qualitative aspects.
What is Cost Accounting? Cost accounting is one of the branches of accounting. It deals with the collection, recording, classification, ascertaining, and analysis of the information and data related to the costs involved in the operations and production processes of an organization.
Cost accounting provides very important and helpful information for costing and helps in pricing. Cost accounting has three main cost elements that are as follows: Material costs that are mainly classified as direct costs and indirect costs.
Labor costs that are mainly classified as direct labor costs and indirect labor costs. Overhead costs such as fixed costs, office costs, selling, general and administrative costs, etc. The main purposes of cost accounting include tracking operations and production costs, fixed costs, and other relevant costs for a firm or organization.
Such information helps the organization in controlling and reducing the various costs, and improving its operational performance. Cost accounting for an organization is usually carried out by its own employees.
Cost accounting information and statements are not necessarily reported or submitted at the financial year end. What is Management Accounting? Management accounting is one of the important branches of accounting.
Management accounting is also known as managerial accounting. It deals with the collection, recording, classification, analysis, and presentation of data and information related to the quantitative and the qualitative aspects. It deals with the financial as well as the non-financial aspects pertaining to the activities of an organization.
Management accounting provides information which is helpful and useful in decision making, policy making, planning, budgeting, forecasting, comparing, and evaluating managerial performance. Similarities between Cost Accounting and Management Accounting: Many of the fundamental processes of cost accounting and management accounting are similar.
Both of them require an essential knowledge of accounting basics and principles. Both cost accounting and management accounting use many similar procedures and techniques of accounting, computation and analysis.
Both strive to provide accurate and relevant data and information to help the management in decision making and improving operational performance of an organization. The information and statements provided by both cost accounting and management accounting are prepared with reference to a particular period, but not necessarily reported or submitted at the financial year end.
Both of them are mainly used by the internal management or the employees of an organization. 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.
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 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.TOC works primarily at the level of the chain, driving focus to the weakest link and then to the linkages between that constraint and other aspects of the system.
Six Sigma, with it's data-based philosophy is great for solving technical issues that are subject to quantitative analysis. The Difference Between Planning and Control Planning is a formulisation of what is intended to happen at some time in the future.
But a plan does not guarantee that an event will actually happen. Jun 14, · he primary difference between the two plans is their cost. PPO is more flexible and offers greater coverage, but it is generally more expensive than HMO.
Aside from the main differences regarding cost and coverage, there are few other aspects that differentiate HMO and PPO, and all need to be taken into account when making a. There is a deep relationship between the controlling and planning functions of management.
Showing the importance of their relationship, it is generally said that planning is meaningless without controlling and controlling is blind without planning. Both the aspects of the interdependence of.
an approach to control in which employee behaviour is regulated by the shared values norms, traditions, rituals, beliefs, and other aspects of the organizations culture. they choose to emphasize either bureaucratic or clan control, and then add some market control measures.
On the other hand, Strategy Implementation refers to the execution of the opted strategy, i.e. it converts the chosen strategy into action, for the realization of organizational goals and objectives. There are many management students, who often juxtapose the two terms.
But there exist a fine line of differences between strategy formulation and strategy implementation, which has been explained.