DIFFERENCE
BETWEEN FA, MA AND CA SYSTEM
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Financial Accounting (FA)
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Management Accounting (MA)
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Cost Accounting (CA)
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1. Financial
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accounting
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1.
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Management
accounting
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1. Cost
accounting is conc-
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is concerned with prep-
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is
concerned with acco-
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erned
with cost determin-
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aration of financial state-
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unting
done by manage-
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ation
i.e. costing,
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cost
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ment i.e.
income state-
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ment
itself that help the
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analysis
and cost control.
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ment and
balance sheet.
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top-level
management in
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decision-making.
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2.
Financial
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accounting is
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2.
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Management
accounting
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2.
Cost accounting is also
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governed
by certain acco-
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has
no such restrictions.
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regulated
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by
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certain
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unting
principles, conc-
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The
management as per
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rules and formats. The
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epts and
accounting stan-
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its
requirement prepares
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techniques
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used
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for
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dards etc.
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it. The
tools used for
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cost
control
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is
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Standard
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management accounting
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costing/variance anal-
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are–ratio analysis,
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cash
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ysis.
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flow
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and
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funds
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flow
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analysis etc.
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3. Financial
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accounting
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3.
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Management accounting
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3.
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Cost accounting takes
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takes raw
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information
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takes
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input
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data
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from
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input data from book-
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from book-keeping sys-
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financial accounting as well
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keeping system i.e. from
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tem.
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as cost accounting system.
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the various vouchers.
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4. The
auditing power of
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4.
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Management accounting
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4.
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Cost accountants, audit
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financial statement rests
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does
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not
require auditing
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cost accounting inform-
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with public accountant
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but can be reviewed by a
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ation.
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e.g. C.A. in India.
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senior executive.
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