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CA Intermediate · Cost and Management Accounting · Introduction to Cost and Management Accounting

Which of the following is a feature of management accounting rather than cost accounting?

Using both financial and non-financial information to support managerial decisions without a prescribed format is a feature of management accounting. It is decision-oriented and flexible, whereas cost accounting concentrates on ascertaining and controlling costs of products or services using recorded cost data.

  1. AAscertaining cost of each product using recorded historical data
  2. BUsing both financial and non-financial information to support managerial decisions, with no prescribed formatCorrect
  3. CFollowing a standardised cost sheet format for cost ascertainment
  4. DDetailed record of material, labour and overheads for cost control

Explanation

Management accounting draws on financial, cost and non-financial data and has no prescribed format, as it aims at supporting decisions and planning. The other options describe the core ascertainment and recording work of cost accounting.

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