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Management accounting

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This ppt covers the following points :-
1. introduction of management accounting
2. Definition of management accounting
3. Nature, objective, tools and techniques, significance and limitations of management accounting
4. difference between financial and management accounting and also includes difference between cost and management accounting
5. management accountant and its roles
6. Management accounting organisation

Publié dans : Formation
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Management accounting

  1. 1. Management Accounting
  2. 2. Content :
  3. 3. Introduction
  4. 4. Definition of Management Accounting Management accounting refers to the presentation of accounting information in such a way as to assist management to the creation of policy and the day to day operation of an undertaking”
  5. 5. Nature of Management Accounting 0 Service function - because it assist management by providing necessary information related to accounting. 0 More concerned with future - it is related to future because decision are taken by analysing accounting information is for future. 0 Selective in nature - because it provide selective information from mess data to the management. 0 Only supplies data not a decision - it only provide a data to the management not take any decision. 0 Integrated system - it is integrated system because it contains both accounting and management.
  6. 6. Objective of Management Accounting 0 Its main objective is to provide selctive information to the management. 0 To assist in planning. 0 To assist in decision-making. 0 To assist in controlling. 0 To assist in co-ordination. 0 Helpful in reporting.
  7. 7. Tools & techniques of Management Accounting 0 Financial planning 0 Financial Statement Analysis 0 Cost Accounting 0 Fund Flow Analysis 0 Cash Flow Analysis 0 Standard Costing 0 Marginal Costing 0 Budegtary Control 0 Revaluation Accounting 0 Decision-making Accounting 0 Management Information System 0 Management Reporting 0 Statistical Technique 0 and so on....
  8. 8. Significance of Management Accounting 0 Proper Planning 0 Effective controlling 0 Increased efficiency 0 Maximizing profitability 0 Performance appraisal 0 Increase in productivity 0 and so on....
  9. 9. Limitations of Management Accounting 0 Based on Accounting information - if wrong information provided then decision also became wrong. 0 Lack of knowledge & understanding - if management have no proper knowledge about information decision may interrupted. 0 Lack of continuity & coordination among different departments of organisation even management to management, it will effect the decision-making process. 0 It is very expensive to set a management accounting system. 0 It is much time consuming. 0 It is based on historical data.
  10. 10. Difference between Financial & Management Accounting S. no. Basis Financial Accounting Management Accounting 1. Objective It provides periodical reports to owners, government and creditors. It provide reports to management only. 2. Nature Concerned with historical records. Concerned with future plans & policies. 3. Subject matter Deals with business as whole. Deals only a limited coverage. 4. Flexibility Less flexible. More flexible. 5. Legal compulsion Statutory Voluntary 6. Scope Narrow Wide 7. Periodicity of reporting At the end of accounting year. Prepared when required. 8. Publication & audit Essential for public use. For management only. 9. Based on accounting principles Yes, based on accounting principles. No specific principles are adopted.
  11. 11. Difference between Cost & Management Accounting S. no. Basis Cost Accounting Management Accounting 1. Objective Find out the cost of products or services. Provide information for decision-making. 2. Nature Both for past and present. For future. 3. Scope Narrow Wide. 4. Age Old concept Modern concept. 5. Principles Principles & methods are adopted. No specific principles are adopted.
  12. 12. Management Accounting Organisation Controller Chief Cost Accountant Budget Officer Chief Accountant/Chief works Accountant Chief Auditor Accounting System Corporate Accounting Accounting Services Assets Accounting Billing Maintain Records Classifying Summarising Communication
  13. 13. Management Accountant - A management Accountant is person who assist the management in decision-making by providing necessary accounting information.
  14. 14. Roles of Management Accounting 0 It provides necessary accounting information to management. 0 It coordinates with other departments for getting information. 0 It controls the performance. 0 It advices the management. 0 It assist the management in decision-making. 0 It preparing reports. 0 and so on….
  15. 15. Presented By :