3. WHAT IS MANAGEMENT ACCOUNTING
•Concern with providing information to managers and people inside the
organization
•Who is managers???? ; who is people inside the organization
•Managers need information to run the company
•Management accounting is a part of accounting
•Management accounting information used for all types of business
•What types of business?????
-Xx
-Xx
-xx
Questions:
•What are others part of accounting
•Give example management accounting information
4. DIFFERENT BETWEEN FINANCIAL ACCOUNTING AND MANAGEMENT ACCOUNTING
DIFFERENT MA FA
Main users External users. Give examples Internal users. Give examples
Timing Focused on history information.
Financial reporting.
Prepared financial statement for last
year in the current year
Focused on future.
Prepare budget report
Production report
Types and frequency
of reports issued
Financial statement consists of
1.________
2._________
3._________
When?
In 6 months
In 12 months
Internal reports such as department
performance report, budgeting report
When?
At anytime when needed
Rules and regulations Must comply with Malaysian
Accounting Standard Board (MASB)
Company Acts (Schedule 9)
General accepted accounting
principle
Reporting purpose Concern give general information to
for internal and external users
Give information to specific group of
people in the organization
5. ACCOUNTING INFORMATION FUNCTION IN MANAGEMENT
•Accounting information used by management for implementing
management function
•Managers used accounting information for the purposed of:
-Plan and control business operation. Evaluate operation
performance/staff performance
-Making decision short and long term. Give examples
-Reporting: financial position/operation position
6. MANAGEMENT FUNCTION
PLANNING DIRECTING & MOTIVATING CONTROLLING
•What is planning, directing and motivating and controlling
•Planning is identify alternatives, select the best alternatives in order
to achieve company objectives
•Directing & motivating: oversea day to day activities, keep company
on track, ability to motivate and effectively direct people
•Controlling: ensure the plan is being followed. Feedback –signals
whether operation are on track
7. Planning & control cycle
Formulating long and short
term plans
(Planning)
Implementing plans
(directing & motivating)
Measuring performance
(controlling)
Comparing actual to
planned performance
(controlling)
8. CHARACTERISTICS MANAGEMENT ACCOUNTING INFORMATION
•ACCURACY
•TIMING
•EASY TO UNDERSTAND
•RELEVANT
•CAN BE COMPARED
•OBJECTIVE
•RELIABLE
•COST EFFECTIVE
•COMPLIMENT
9. HOMEWORK 1:
Question 1: Definition management
accounting from 3 authors?
Question 2: Different between
management accounting and
financial accounting?
Question 3: List types of cost?
10. ASSIGNMENT 1:
Question 1: ROLE OF MANAGEMENT
ACCOUNTANTS
Question 2: GIVE DEFINITION AND EXAMPLE
i. DECENTRALIZATION
ii. LINE POSITION
iii. STAFF POSITION
iv. CHIEF FINANCIAL OFFICER
