By-NIKITA SACHDEVA    RIDDHI PATEL
 Financialaccounting Management accounting Fundamental Management Process Objectives Management accounting v/s Financ...
o   Focuses on preparation of financial    statements required by GAAP.       Prepared for use by external users.       ...
o   Management accounting measures and    reports financial and non-financial    information that helps managers make    d...
 Decision   making Planning Directing operational activities Controlling
 Provide  information for decision making and  planning. Assisting managers in directing and  controlling operational ac...
 Assessingthe organizations competitive position, and working with other managers to ensure the organizations long run co...
MANAGEMENT                 FINANCIALNECESSITY             Optional                   RequiredUSES                  Interna...
Management              FinancialUNDERLYING         Information to assist Accounting equation:STRUCTURE          in decisi...
o   Measurement purpose.       Measurement of revenues, costs, and assets.o   Control purpose.       Evaluate operations...
Model of business performance evaluation that  balances measures of financial performance internal operation Innovation...
 FINANCIAL   PERSPECTIVE GOALS MEASURESQ. How do we look to the Company’s owners?
 CUSTOMER   PERSPECTIVE GOALS MEASURESQ.How do are customers view are services?
 INNOVATION   AND LEARNING PERSPECTIVE GOALS MEASURESQ. How can we continually improve and create value in our company?
 INTERNAL   OPERATIONS PERSPECTIVE GOALS MEASURESQ. In which activities must we excel?
 Information   and incentives Behavioral   issues Costs   and benefits
 E-business Service v/s manufacturing firms Emergence of new industries Global competition Focus on customer Cross f...
A management planning and control systemwith following objectives Measure cost of resources Eliminate non value added co...
PRODUCT DESIGN                                PRODUCTION     RESEARCH AND     DEVELOPMENT                                 ...
Final cma
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Final cma

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Final cma

  1. 1. By-NIKITA SACHDEVA RIDDHI PATEL
  2. 2.  Financialaccounting Management accounting Fundamental Management Process Objectives Management accounting v/s Financial accounting Uses of management accounting Balance score card Major themes in managerial accounting Evolution in managerial accounting Cost management accounting
  3. 3. o Focuses on preparation of financial statements required by GAAP.  Prepared for use by external users.  Provides summary of an entity’s financial condition and results of activities.
  4. 4. o Management accounting measures and reports financial and non-financial information that helps managers make decisions to fulfill the goals of an organization.o Managers use management accounting information to: Choose , communicate and implement strategy. Co-ordinate product design, production and marketing decision.
  5. 5.  Decision making Planning Directing operational activities Controlling
  6. 6.  Provide information for decision making and planning. Assisting managers in directing and controlling operational activities. Motivating managers and other employees towards the organization’s goals. Measuring the performance of activities, managers, and other employees.
  7. 7.  Assessingthe organizations competitive position, and working with other managers to ensure the organizations long run competitiveness in its industry.
  8. 8. MANAGEMENT FINANCIALNECESSITY Optional RequiredUSES Internal: External:  Managers  Shareholders  Individuals who assist  Creditors in analysis  Government agencies , etc.PURPOSE Produce information for Produce information for planning, outside users. implementation and control function.INFORMATION CONTENT Both monetary and non- Primarily monetary monetary information events. (i.e., accounting transactions)
  9. 9. Management FinancialUNDERLYING Information to assist Accounting equation:STRUCTURE in decision making Assets= liability + related to: shareholder’s equity  Measurement  Control  Alternative choicesTIME ORIENTATION  Primarily future  Primarily past oriented. oriented.  E.g.: forecasts ,  Reporting of history estimates, plans. finance.  Some historical information for predictive value .REPORT FREQUQNCY Can be monthly, Annually with less weekly, daily or even detailed interim more frequently. report.
  10. 10. o Measurement purpose.  Measurement of revenues, costs, and assets.o Control purpose.  Evaluate operations and (if needed) assign corrective action to person/organization unit responsible.o Alternative courses of action purpose.  Analyze information and choose best course of action.
  11. 11. Model of business performance evaluation that balances measures of financial performance internal operation Innovation and learning Customer satisfaction
  12. 12.  FINANCIAL PERSPECTIVE GOALS MEASURESQ. How do we look to the Company’s owners?
  13. 13.  CUSTOMER PERSPECTIVE GOALS MEASURESQ.How do are customers view are services?
  14. 14.  INNOVATION AND LEARNING PERSPECTIVE GOALS MEASURESQ. How can we continually improve and create value in our company?
  15. 15.  INTERNAL OPERATIONS PERSPECTIVE GOALS MEASURESQ. In which activities must we excel?
  16. 16.  Information and incentives Behavioral issues Costs and benefits
  17. 17.  E-business Service v/s manufacturing firms Emergence of new industries Global competition Focus on customer Cross functional teams PLC JUST IN TIME
  18. 18. A management planning and control systemwith following objectives Measure cost of resources Eliminate non value added costs Efficiency and effectiveness of activities Identify new activities
  19. 19. PRODUCT DESIGN PRODUCTION RESEARCH AND DEVELOPMENT MARKETINGSECURING RAWMATERIAL AND DISTRIBUTIONOTHER RESOURCES CUSTOMER START SERVICE

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