Question 1

1. What is the main difference between cost accounting and management accounting?

Accepted Answer

Cost accounting deals with cost control and measurement, while management accounting helps in planning and strategic decision-making using financial and non-financial information.

Question 2

2. Can a company operate with only one of these accounting systems?

Accepted Answer

It’s possible but not ideal. Cost accounting gives precise cost data, but without management accounting, a company lacks the ability to make strategic decisions using that data.

Question 3

3. Is cost accounting legally required?

Accepted Answer

Yes, in certain industries like manufacturing, it is mandatory to maintain cost records as per government regulations.

Question 4

4. What qualifications are required for a career in cost and management accounting?

Accepted Answer

Degrees like B.Com, M.Com, CMA, CPA, ACCA, or MBA with finance specialization are commonly pursued by professionals in this field.

Question 5

5. Are financial accounting and management accounting the same?

Accepted Answer

No. Financial accounting is for external stakeholders and follows strict guidelines, while management accounting is flexible and designed for internal use.