What is Management Accountancy?

drnaga

Par 100 posts (V.I.P)
Management Accountancy​

Focused on business and uniquely covers:
  • Operations
  • Change Management
  • Relationship and Project Management
  • Marketing

CIMA puts emphasis on:

  • Human Resource Management
  • Applied management accounting techniques
  • Stronger emphasis on application and analysis of knowledge.
  • Students better qualified to deal with business decisions.
  • Focuses on broad business management skills: equips trainees to deal with decisions and changes that affect the whole organisation.
 

aghosh011

New member
Management accounting is a specialized sub set of accounting,
It focuses on internal needs of businesses. While financial accounting focuses on external
reporting and history, management accounting focuses on current information and the needs of
in house management. Both management and financial accounting work together to give management
and external users the information required. Often a management computer system feeds into a financial
computer system, providing users and stakeholders with complete cost information.
 

Kamaini

New member
Management Accountancy is the process of preparing management reports and accounts that provide accurate and timely financial and statistical information required by managers to make day-to-day and short-term decisions. Management accounting is a changing, growing area with many challenges. Finding ways to measure costs and to control them is at the heart of this type of accounting. Management needs tools to control costs to allow for analysis of processes, making operations more efficient and profitable.

Kamini
(Student- FOSTIIMA Business School)
 

klager2828

New member
Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions.
In contrast to financial accountancy information, management accounting information is:
primarily forward-looking, instead of historical;
model based with a degree of abstraction to support decision making generically, instead of case based;
designed and intended for use by managers within the organization, instead of being intended for use by shareholders, creditors, and public regulators;
usually confidential and used by management, instead of publicly reported;
computed by reference to the needs of managers, often using management information systems, instead of by reference to general financial accounting standards.


According to the Chartered Institute of Management Accountants (CIMA), Management Accounting is "the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information used by management to plan, evaluate and control within an entity and to assure appropriate use of and accountability for its resources. Management accounting also comprises the preparation of financial reports for non-management groups such as shareholders, creditors, regulatory agencies and tax authorities"(CIMA Official Terminology).
 
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