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Management accounting can be viewed as Management-oriented Accounting. Basically it is the study of managerial aspect of financial accounting, "accounting in relation to management function". It shows how the accounting function can be re-oriented so as to fit it within the framework of management activity.
Any form of accounting, which enable a business to be conducted more efficiently, can be regarded as Management Accounting
-Institute of Chartered Accountants, England
No Fixed Norms Followed:In financial accounting, we follow different norms and rules for creating ledgers and other account books. But there is no need to follow fixed norms in management accounting. Management accounting tool may be different from one organization to other organization. Using of different tools of management accounting is fully dependent on the persons who are using it. So, business policy of each organization affects rules and regulation of applying management accounting.
Increase in Efficiency:It is the nature of management accounting that it is used for increasing in the efficiency of organization. It scans the points of inefficiency through analysis of accounting information. By taking action for improving, organization can increase the efficiency
Supplies Information not Decisions:Management accountant supplies accounting facts and information and also provides interpretation, but decision making is fully dependent on higher authorities. Management accounting is just guide.
Concerned with Forecasting :It is the temperament of management accounting that it is fully concerned with forecasting. In management accounting, historical accounting information is analyzed through common size financial statement, ratio analysis, fund flow analysis and accounting data tendency for knowing the probability of next fact.
Financial accounting Cost Accounting Internal Audit Budgetary control Inventory Control Taxation Statistical Methods Interim Reporting
Provides data: Modifies data Analyses and interprets data Serves as a means of communicating Facilitates control Uses also qualitative information
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