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 ?
To provide guidance for management accountants, IMA's Management Accounting Practices (MAP) Committee issued Statements on Management Accounting.
IMAA (Institute of Management Accountants) has released its enhanced Management Accounting Competency Framework.
My Management Accountant, based at the Media Centre in Huddersfield, specialises in cloudbased accounting services - from year-end accounts, tax returns and payroll to management accounts and finance director support.
On the occasion an inclusive interview of Governor Sindh was also conducted for the 'Management Accountant' a flagship official Journal of ICMA Pakistan.
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.
Summary: Management accountants now have a new specialty credential tailored towards driving the strategic planning process.
"The CSCA is ideal for management accountants who not only want to enhance their careers, but also sustain their professional development," said Dennis Whitney, CMA, CAE, senior vice president of certifications, exams, and content integration for the Institute of Certified Management Accountants (ICMA).
CIMA has formed a joint venture with the American Institute of CPAs (AICPA) to establish the Chartered Global Management Accountant (CGMA) designation.
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).
CFOs and their finance teams are toughening policies on suppliers and increasing insurance coverage as they are asked take on a larger role in defending their companies from emerging cyber risks, according to a new survey of Chartered Global Management Accountant (CGMA) designation holders.

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