1. By-
NIKITA SACHDEVA
RIDDHI PATEL

2.  Financialaccounting
 Management accounting
 Fundamental Management Process
 Objectives
 Management accounting v/s Financial
accounting
 Uses of management accounting
 Balance score card
 Major themes in managerial accounting
 Evolution in managerial accounting
 Cost management accounting

3. o Focuses on preparation of financial
statements required by GAAP.
 Prepared for use by external users.
 Provides summary of an entity’s financial
condition and results of activities.

4. o Management accounting measures and
reports financial and non-financial
information that helps managers make
decisions to fulfill the goals of an
organization.
o Managers use management accounting
information to:
 Choose , communicate and implement
strategy.
 Co-ordinate product design, production and
marketing decision.

5.  Decision making
 Planning
 Directing operational activities
 Controlling

6.  Provide information for decision making and
planning.
 Assisting managers in directing and
controlling operational activities.
 Motivating managers and other employees
towards the organization’s goals.
 Measuring the performance of activities,
managers, and other employees.

7.  Assessingthe organizations competitive
position, and working with other managers to
ensure the organizations long run
competitiveness in its industry.

8. MANAGEMENT FINANCIAL
NECESSITY Optional Required
USES Internal: External:
 Managers  Shareholders
 Individuals who assist  Creditors
in analysis  Government agencies ,
etc.
PURPOSE Produce information for Produce information for
planning, outside users.
implementation and
control function.
INFORMATION CONTENT Both monetary and non- Primarily monetary
monetary information events. (i.e., accounting
transactions)

9. Management Financial
UNDERLYING Information to assist Accounting equation:
STRUCTURE in decision making Assets= liability +
related to: shareholder’s equity
 Measurement
 Control
 Alternative choices
TIME ORIENTATION  Primarily future  Primarily past
oriented. oriented.
 E.g.: forecasts ,  Reporting of history
estimates, plans. finance.
 Some historical
information for
predictive value .
REPORT FREQUQNCY Can be monthly, Annually with less
weekly, daily or even detailed interim
more frequently. report.

10. o Measurement purpose.
 Measurement of revenues, costs, and assets.
o Control purpose.
 Evaluate operations and (if needed) assign
corrective action to person/organization unit
responsible.
o Alternative courses of action purpose.
 Analyze information and choose best course of
action.

11. Model of business performance evaluation that
balances measures of
 financial performance
 internal operation
 Innovation and learning
 Customer satisfaction

12.  FINANCIAL PERSPECTIVE
 GOALS
 MEASURES
Q. How do we look to the Company’s owners?

13.  CUSTOMER PERSPECTIVE
 GOALS
 MEASURES
Q.How do are customers view are services?

14.  INNOVATION AND LEARNING PERSPECTIVE
 GOALS
 MEASURES
Q. How can we continually improve and create
value in our company?

15.  INTERNAL OPERATIONS PERSPECTIVE
 GOALS
 MEASURES
Q. In which activities must we excel?

16.  Information and incentives
 Behavioral issues
 Costs and benefits

17.  E-business
 Service v/s manufacturing firms
 Emergence of new industries
 Global competition
 Focus on customer
 Cross functional teams
 PLC
 JUST IN TIME

18. A management planning and control system
with following objectives
 Measure cost of resources
 Eliminate non value added costs
 Efficiency and effectiveness of activities
 Identify new activities

19. PRODUCT DESIGN
PRODUCTION
RESEARCH AND
DEVELOPMENT
MARKETING
SECURING RAW
MATERIAL AND DISTRIBUTION
OTHER RESOURCES
CUSTOMER
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