management accounting

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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 ?
Teitz, Managerial Accounting, Fourth Edition, Pearson, 2014.
CA-Cost/Advanced An intermediate-level course covering Managerial Accounting the managerial use of accounting data to assist managers in their plans and decisions regarding resource allocation, organizational control, and performance evaluation.
2: An accounting major who performs better in a managerial accounting course is more likely to be a better performer in other managerial accounting courses.
The design of a podcast/vodcast assignment for an Accounting Information Systems class and for a Managerial Accounting class is discussed.
Key words: managerial accounting, strategic management, users, qualitative characteristics, objectives
Previously, students enrolled in managerial accounting course were required to take at least three quizzes in the first half of the trimester and three quizzes in the second half, or a total of six quizzes aside from the midterm and departmental final examinations.
This textbook and the supporting materials focus on uses and interpretation rather than production of managerial accounting information.
She was a skilled financial analyst and worked in managerial accounting for several large companies in Massachusetts including TJX in Framingham.
Cases cover health care financial accounting and managerial accounting, financial management basics, capital acquisition and investment, and aspects of working capital.
lt;/pre> <pre> Core courses in the UAS MBA YEAR 1 [check] Seminar in Marketing [check] Human Resource and Personnel Management [check] Service Operations Management [check] Managerial Accounting [check] Administrative Law for Managers YEAR 2 [check] Research in Business Administration [check] Seminar in Finance [check] Organizational Theory and Behavior [check] Managerial Accounting [check] Management Information Systems [check] Business Administration Capstone </pre> <p>Mark Speece is associate professor of marketing and director of the MBA program at the University of Alaska Southeast.
Overall, it can be said that this was a period when senior financial executives had to consider, more than previously, the broader economic environment in which the firm operated, rather than just the narrow accounting, internal managerial accounting and financial reporting responsibilities.
Over the past year, Headquarters, Department of the Army (HQDA) has significantly improved its capability to perform managerial accounting is support of Army Staff and Major Command (MACOM) decision makers.