Both cost accounting as well as management accounting is closely related. Cost accounting deals with establishing the budget and the actual expenditure of operations, processes or products in addition to the study of variances and the profitability/social utilization of funds. Management accounting deals with the requirements and use of principles in accounting by mangers inside firms. Management accounting is mainly done to provide those managers with correct information in order to make them better equipped to make decisions based on control and management functions.

Cost accounting course and career opportunities

Candidates who want to join the course in cost accounting must have finished their graduation in Finance or accounting. For procuring a specialization in accounting, it is also possible for the candidates to go for a course in MBA. For obtaining jobs within companies it is important for the candidates to get a certificate from the Certified Management Accountants (CMA). After finishing this course, students can get jobs with Business Process Outsourcing/Knowledge Process Outsourcing companies, consultancies and banks in addition to other financial institutions. Candidates can also get jobs overseas. The initial salary of the candidates will be as much as Rs. 4, 00, 00 a year. Professionals in the field of Cost accounting may get around Rs. 6,00,000/- each year. With more experience and familiarity in this field, the students will be able to earn more.

Management accounting course and career opportunities

Candidates who wish to join this course must have finished their graduation in the related subject. After finishing their course in management accounting, candidates can either go for higher studies or find employment. Jobs are available for students of management accounting in both India and overseas. They can be employed as Chief Financial Controller, Chief Accounts Officers or as Chief Internal Auditor etc. The initial annual salary of the candidates will be around Rs. 2,50, 000. Those candidates who have more experience may earn as much as Rs. 7,50,000 a year. The remuneration of the candidates will depend upon their proficiency, experience and the type of the company that hires them.

Key differentiators

Cost accounting deals with the accumulation of cost for inventory assessment. This is done in order to meet the requirements of internal measurement of profit as well as exterior reporting. Management accounting is about the provision of correct information for making decisions. It is also used for planning as well as managing and evaluation purposes.