management accounting

(redirected from management accountants)
Also found in: Dictionary.

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 ?
Management accounting was also "professionally" subordinate in the sense that the Institutes of Chartered Accountants had created the Society of Management Accountants of Canada and the survival of the society during its early years depended upon their support.
Management accountants are often placed in a judge-type role as the financial--and, in part, performance--scorekeepers and evaluators for financial results, budget development, and operating and capital process improvement investments.
This is a very favourable collaboration between CIMA, world's leading professional body of Management Accountants and IBA, the most prestigious business school of Pakistan; the students of IBA will benefit tremendously in terms of not just acquiring academic qualifications but also by gaining professional expertise through this partnership, it was further stated.
The Institute of Management Accountants (IMA) and the Association of Chartered Accountants (ACCA) have developed joint studies to help CFOs and finance teams realize the accountability, obligations, and opportunities as summarized above.
The Institute of Cost and Management Accountants of Pakistan (ICMA Pakistan) organised its first ever global event by the name and title of 'Global Management Accountants Conference (GMAC) recently at Pakistan Auditorium in Dubai, UAE which attracted participation from international and regional finance experts and professional accounting bodies, especially from Gulf and Middle East countries.
Cost and Management Accountants play a pivotal role in this regard, he added.
You'll work closely with more senior management accountants, the financial controller or finance director, giving fundamental finance and accountancy support.
These are the tools of management accountants, not financial accountants; they are the professionals who must fuse financial and nonfinancial data.
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).
The designation recognizes the most talented and committed management accountants with the discipline and skill to drive strong business performance.
In response to the needs of members working in corporations of all ownership structures and sizes, the AICPA formed a joint venture with the Chartered Institute of Management Accountants (CIMA) in 2011.

Full browser ?