Cost and management accounting is a branch of accounting that deals with the identification, measurement, analysis, interpretation, and communication of financial and non-financial information to support decision making, planning, and control within an organization.
Cost accounting focuses on the determination of the cost of producing a product or providing a service. This involves analyzing the various costs associated with production, such as direct materials, direct labor, and overhead, and assigning these costs to products or services. Cost accounting information is used to make decisions about pricing, product mix, and cost reduction.
Management accounting, on the other hand, provides information to managers for decision-making, planning, and control. This involves preparing budgets, analyzing variances, evaluating performance, and forecasting future financial performance. Management accounting information is used to improve operational efficiency, manage risks, and achieve strategic objectives.
Overall, cost and management accounting play a critical role in helping organizations achieve their financial and strategic goals by providing relevant and timely information for decision-making and control.