management accounting


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Related to management accounting: cost accounting, Financial accounting

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 ?
Table 1: Descriptive indicators related to strategic management accounting methods.
"Integrated performance measurement: management accounting to support the new manufacturing realities", Journal of Management Accounting Research, Fall, pp: 1-19.
Furthermore, grounded on the research on the mediation by Baron and Kenny (1986), we can see that the mediating role of adopting management accounting practices is important in the effect of corporate governance practices on organizational performance.
However, the number of studies on such management tools as corporate governance or management accounting practices in Vietnam is still humble.
The authors' main goal was to establish how the systems affected the exchange of information between the branches and the headquarters, as well as the management accounting and internal control solutions.
One of the most interesting studies dealing with ERPs impacts on management accounting and management accounting specialists was conducted by M.
For more than 20 years, Giddens' theory of structuration has been proposed as a useful means of conducting alternative management accounting research (see Baxter and Chua, 2003).
Thus, some authors have sought to verify whether the companies still use management accounting tools considered traditional or whether they use modern ones.
In recent years, the AICPA and CIMA have established a successful track record of collaboration and thought leadership, including a series of management accounting guidelines as well as recent member surveys on accounting for sustainability and enterprise risk management.
If it is true that management accounting serves the above important function as highlighted in the definitions above, then the use of its tools by managers of firms in developing countries will go a long way to guaranteeing their corporate profitability.
Global Property Management Accounting Software Product Types In-Depth: , On Cloud & On Premise
To incorporate social, economic and environmental aspects within new CMAP we need to adopt a critical view rather than a technical view to management accounting.

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