Tuesday, February 18, 2014

DIFFERENCE BETWEEN Financial Accounting , Management Accounting AND Cost Accounting

DIFFERENCE BETWEEN FA, MA AND CA SYSTEM


Financial Accounting (FA)
Management Accounting (MA)
Cost Accounting (CA)





1. Financial
accounting
1.
Management accounting
1. Cost accounting is conc-
is concerned with prep-

is concerned with acco-
erned with cost determin-
aration of financial state-

unting done by manage-
ation i.e. costing,
cost
ment i.e. income state-

ment itself that help the
analysis and cost control.
ment and balance sheet.

top-level management in







decision-making.




2. Financial
accounting is
2.
Management accounting
2.  Cost accounting is also
governed by certain acco-

has no such restrictions.
regulated
by
certain
unting principles, conc-

The management as per
rules and formats. The
epts and accounting stan-

its requirement prepares
techniques
used
for
dards etc.


it.  The  tools  used  for
cost control
is
Standard




















management accounting

costing/variance anal-



are–ratio analysis,
cash

ysis.



flow
and
funds
flow





analysis etc.




3. Financial
accounting
3.
Management accounting
3.
Cost accounting takes
takes  raw
information

takes
input
data
from

input data from book-
from book-keeping sys-

financial accounting as well

keeping system i.e. from
tem.


as cost accounting system.

the various vouchers.
4. The auditing power of
4.
Management accounting
4.
Cost accountants, audit
financial statement rests

does
not require auditing

cost accounting inform-
with public accountant

but can be reviewed by a

ation.
e.g. C.A. in India.

senior executive.