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.

Management Accounting:
Management accounting is one of the important
branches of accounting. Management accounting is also known as managerial
accounting. It aims to serve an organization’s management, particularly the top
management. 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.

Financial Accounting:
Financial accounting is a process of preparing financial
statements that companies use to show their financial performance and financial
position to people outside the company including investors creditors suppliers and
customers.

Principles of cost accounting

Cause effect relationship:

First principle of cost accounting is cause effect
relationship. Cause effect relationship should be established for each item of cost. Each
item of cost should be related to its cause as minutely as possible that is main principle
of cost accounting.

Charge of cost only after incurrence:

Another principle of cost accounting is charge of
cost only after its incurrence. In cost accounting there should be charge only after its
incurrence that is another principle of cost accounting

Principle of double entry:

Another principle of cost accounting is double
entry system. In cost accounting all the accounts prepared and control on double entry
system that is another principle of cost accounting. The accounts should be maintained
on double entry system.

Principles of management accounting:

Utilization of resources:
The main principle of management accounting is
utilization of resources. The available resources are affectively use. The reason is that
some resources are available in plenty only in reason and some other resources are
available in scarcity throughout the year that is another principle of management
accounting.

Utility:
Another principle of management accounting is utility. Management accounting
systems and all other forms must should be use as long serve a useful purpose that is
main principle of management accounting.
Personal contacts:
Principle of personal contacts base on contacts with
departments. In management accounting there must should be contacts with
departments and other managers that is another principle of management accounting.

Objectives of financial accounting:

Preparing financial statements:

First point of objective of financial
accounting is preparing financial statements. In financial accounting there should be
prepare financial statements on time that is main principle of financial accounting.

Financial performance and position:

Another object of financial
accounting is financial performance and position. In financial accounting the purpose is
to show the financial position and financial performance that is another objective of
financial accounting.
 Difference between management and cost accounting

Definition:
Cost accounting deals with collection recording the data related to the
cost of production and on the other hand management accounting deals with collection
recording the data related to the activities of organization.
Focus:
Another point is focus the focus of cost accounting is to recoding the cost
of transactions and on the other hand focus of management accounting is to help the
management in decisions making.

Objective:
Another point is objective. The objective of cost accounting id to reduce
the cost and on the other side the objective of management accounting is to help the
management.

Nature:
The nature of cost accounting is historical and futuristic and on the other
side the nature of management accounting if futuristic that related with planning.
.

Scope:
The scope of cost accounting id narrow because cost accounting is concerned
with cost and on the other side scope of management accounting is wider that is another
point of difference