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 ?
(1982), History of the Society of Management Accountants of Canada (Hamilton: Society of Management Accountants of Canada).
It's typical for management accountants to perform their accounting duties while the IT department is responsible for maintaining accounting software and hardware to facilitate and support those activities.
The Institute of Cost and Management Accountants of Bangladesh will be established under the proposed bill and the headquarters of the institute also to be located at Dhaka, according to the proposed bill.
These technologies, though, offer management accountants in the region an unprecedented opportunity to support faster, better, more strategic business decisions -- if they have the right skills.
President ICMA Kashif Mateen Ansari while briefing the D.G NUML regarding ICMA said that Institute of Cost and Management Accountants of Pakistan (ICMA Pakistan) was established in 1951 with the objective to regulate and promote the profession of Management Accounting in Pakistan.
The Chartered Institute of Management Accountants (CIMA), founded in 1919, is the world's leading and largest professional body of management accountants, with over 218,000 members and students operating in 177 countries, working at the heart of business.
Software developments have led management accountants to focus less on inputs and more on interpreting financial data and getting involved in strategic planning.
But JCU was also a testing site for the CMA[R] (Certified Management Accountant) exam, and I became the administrator of the exam there as part of my job.
ISLAMABAD -- Institute of Cost and Management Accountants of Pakistan (ICMA Pakistan) and the Asia e University of Malaysia, entered into a memorandum of understanding.
IMAA (Institute of Management Accountants) has released its enhanced Management Accounting Competency Framework.
The Institute of Cost and Management Accountants of Bangladesh (ICMAB) Saturday observed the "International Accounting Day" to promote the accounting profession, reports BSS.
Lahore -- FFC annual report 2017 has been declared number one by Institute of Chartered Accountants of Pakistan (ICAP) and Institute of Cost and Management Accountants of Pakistan (ICMAP).

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