Scope of Management Accounting
Topic: Scope of Management Accounting
Learning Objective:
Define and explain the distinguishing features of management accounting. Explain the concept of cost accounting and cost object Differentiate between data and information
List the type of information needed * last page
Identify and explain the elements of useful information
Explain the concept of financial (and non-financial) information and its limitations Differentiate between management accounting and financial accounting. List the broad functions of management and why they need cost information. Outline the level of planning and their information needs Understand how management accountant fits into an organization’s structure Describe three ways management accountants support managers
Abstract:
Management accounting is concerned with providing information to managers - the internal users. Managers develop strategies for achieving goals, evaluate the performance of workers and of other managers, and make decision. Manager decides what price to charge for their products, whether to continue to sell a particular product, and whether to construct a new factory building. Many activities performed by managers have to do with acquiring and utilizing economic resources and managers need information to aid them in making these decisions. Management accountants generate much of the information managers use to plan operations and make decisions.
Management accounting provides information tailored to the need for each decision making. This means that only useful information is provided. To do this, management accounting must be manager centered. It must understand what a manager does, the type of information needed and the general business environment.
The role of management accountant is to provide information. Thus there is a need at the initial stage to differentiate the term between data and information. Then the focus is to provide useful information, not merely
Learning Objective:
Define and explain the distinguishing features of management accounting. Explain the concept of cost accounting and cost object Differentiate between data and information
List the type of information needed * last page
Identify and explain the elements of useful information
Explain the concept of financial (and non-financial) information and its limitations Differentiate between management accounting and financial accounting. List the broad functions of management and why they need cost information. Outline the level of planning and their information needs Understand how management accountant fits into an organization’s structure Describe three ways management accountants support managers
Abstract:
Management accounting is concerned with providing information to managers - the internal users. Managers develop strategies for achieving goals, evaluate the performance of workers and of other managers, and make decision. Manager decides what price to charge for their products, whether to continue to sell a particular product, and whether to construct a new factory building. Many activities performed by managers have to do with acquiring and utilizing economic resources and managers need information to aid them in making these decisions. Management accountants generate much of the information managers use to plan operations and make decisions.
Management accounting provides information tailored to the need for each decision making. This means that only useful information is provided. To do this, management accounting must be manager centered. It must understand what a manager does, the type of information needed and the general business environment.
The role of management accountant is to provide information. Thus there is a need at the initial stage to differentiate the term between data and information. Then the focus is to provide useful information, not merely