management accounting

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Related to Management accountant: Certified Management Accountant

Cost Accounting

A branch of accounting that observes and calculates the actual costs of a company's operations. Internal managers, rather than auditors, use cost accounting most of the time to identify aspects of their company where costs can be cut. For example, a manager may enlist a cost accountant to determine the most expensive aspects of his/her business that is, where the money goes. The accountant may make a detailed report so that the manager may make decisions based upon it. Because cost accounting is primarily internal, it need not conform to the Generally Accepted Accounting Principles. It is also called managerial or management accounting. See also: Assurance, Activity-based costing.
Management accountingclick for a larger image
Fig. 53 Management accounting. Trading results: Y Company Plc for year ending 20xx.

management accounting

any accounting activities geared to the preparation of information for managers to help them plan and control a company's operations. Management accounts generally provide more detailed information than financial accounts; for example, breaking down revenues and costs between different products, factories or departments to provide comparative data and to help reveal profitable and unprofitable activities. Management accounts also tend to provide information about performance more frequently than financial accounts, with monthly or even weekly management accounts rather than annual financial accounts, to give managers prompt feedback and to enable them to act quickly to check inefficiencies. Management accounts are geared to estimates of future costs and revenues rather than simply reporting past revenues and costs as financial accounts do, thereby ‘providing valuable management information for preparing accurate estimates and tenders and for use in negotiating price changes.

Fig. 53 shows how more detailed analysis of revenues and costs can provide more useful information than total information as reported in the PROFIT-AND-LOSS ACCOUNT. Compare FINANCIAL ACCOUNTING. See also BUDGETING.

management accounting

any accounting activities geared to the preparation of information for managers to help them plan and control a company's operations. Management accounts generally provide more detailed information than financial accounts, for example, breaking down revenues and costs between different products, or factories or departments to provide comparative data and to help reveal profitable and unprofitable activities. Management accounts also tend to provide information about performance more frequently than financial accounts, with monthly or even weekly management accounts rather than annual accounts, to give managers prompt feedback and to enable them to act quickly to check inefficiencies. Compare FINANCIAL ACCOUNTING.
References in periodicals archive ?
This he said during a meeting with a 4-member delegation of Institute of Cost and Management Accountants (ICMA) Pakistan led by its president Mr.
Analysing financial data and pinpointing past and emerging trends, management accountants play a central role in a company's growth, profitability and productivity.
GRADUATE MANAGEMENT ACCOUNTANT A degree demands passion, precision and perseverance - attributes hiring managers love.
For example, while engaged in a continuous quality improvement initiative to enhance the company's reliance on more efficient equipment and more effective labor, a management accountant might need to revise resource allocation policies, outlook projection reports, and risk management functions.
The Institute was, later, named as the "Institute of Cost and Management Accountants of Pakistan" and now commonly known with its acronym, "ICMA Pakistan".
Thereby, the SECP now requires all public companies to appoint only cost and management accountants or chartered accountants as their cost auditors, which hold satisfactory rating from the Institute of Cost and Management Accountants of Pakistan (ICMAP) or the Institute of Chartered Accountants of Pakistan (ICAP).
For more information on the Chartered Global Management Accountant (CGMA) designation visit www.
With the predictive model, the management accountant could ask, "If we increase prices of our consumer products by 2%, what will be the resulting value of our sales?
CIMA has formed a joint venture with the American Institute of CPAs (AICPA) to establish the Chartered Global Management Accountant (CGMA) designation.
The GCC-Certified Management Accountant (GCC CMA) Summit 2013 will be held in Bahrain next month under the patronage of Industry and Commerce Minister Dr Hassan Fakhro.
That becomes gold in the hands of a competent management accountant who has the background and understanding, and now the tools and techniques, to develop predictive analytics.
com)-- FISC Solutions is proud to announce that Melissa Pratt, Senior Vice President of Finance has earned her Certified Management Accountant (CMA[R]) credential through the Institute of Certified Management Accountants (ICMA[R]), the certification division of IMA[R].

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