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 ?
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?
Topics to be discussed include: Management accountants as business partners, Recession and profession - CMA initiatives, Effective cost control techniques for manufacturing and service industries, IT and management accounting, Strategic financial and risk management, Currency unification - boon or bane?
So a consequence is that the management accountant is not able to be an effective partner to management in developing outcomes the organisation is seeking.
2008) there are four types of the roles of management accountant in organization, namely as an "Administration", as a "Doer", as a "Conceptor" and as an "Actor".
This is demonstrated by completion of a comprehensive examination on accounting and related subjects, meeting a two-year management accounting experience and agreeing to abide by the Standards of Ethical Conduct for Management Accountants.
Your employer is the link between the credential and the academic and practical experience that ensures you'll become a good management accountant.
Sarah Webb, a twenty-five-year old financial analyst at Rolls-Royce's risk and revenue sharing division, has become the 60,000th Chartered Institute of Management Accountants (CIMA) member.
in Stoke-on-Trent; 1991-'93, ICL Group Management Accountant, London, U.
This scenario describes an excellent work environment, and the management accountant can do a great deal to facilitate its creation.
The IMA has been around for 93 years and our certification, certified management accountant, has been around for 40 years.
After the game-changing launch of the new Chartered Global Management Accountant (CGMA) designation at the end of January, each of our members is getting used to having additional letters at the end of their name and new associates in the US.

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