management accounting

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Related to management accountants: Certified Management Accountant, Institute of Management Accountants

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 ?
Today, this view has changed significantly as management accountants are often involved in the formulation of business strategy.
Management accountants should educate their companies about the power and value of collaboration tools for their businesses and on the necessary controls.
Gray wrote about the importance of data mining for management accountants, stating, "Data mining can help you better understand your business by providing new insights into areas such as customer buying and return patterns, product profitability, instances of general, selling and administrative (GS&A) expenses, and fraud detection.
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 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.
Management accountants are best able to exploit this asset because they are equipped with the skills, competencies, tools and techniques for extracting as much insightful information as possible from data.
And they also expect an increase in recruitment and more money available for investment, said the latest Chartered Institute of Management Accountants (CIMA) Qualified Salary Survey for 2011.
He further stressed the importance of management accountants for performance evaluations in order to bring accountability.
Jordan Association of Management Accountants (JAMA) held on March 6, at Grand Hyatt Amman, a ceremony for launching its operation, during which JAMA signed an affiliation agreement with the Institute of Management Accountants (IMA) in the USA.
Islamabad, March 10, 2010 (Frontier Star): A Pakistani student Hassan Siddiq, from Karachi, Pakistan, who is Management accountant trainee, has come first in the world in one of the prestigious Chartered Institute of Management Accountants (CIMA) November 2009 accountancy exams.
in Indonesian context, there were still many management accountants involved in technical or administrative level.
New Delhi, Nov 21 (ANI): The Institute of Cost and Works Accountants of India (ICWAI) has entered into a Memorandum of Understanding (MoU) with a prominent corporate group of Oman: Omar Zawawi Establishment LLC ( OMZEST ) to promote an institute of cost and management accountants in Oman.

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