2. CONTENT
• Definition of Management Accounting
• Nature of Management Accounting
• Objectives
• Tools and Techniques
• Limitations
• Difference between Financial and Management Accounting
• Difference between Cost and Management Accounting
• Management Accountant
• Roles of Management Accountant
• Qualities of management Accountant
3. Management accounting is concerned
with accounting information that is
Useful to the management.
- Robert.N.Anthony
DEFINITION OF
MANAGEMENT ACCOUNTING
4. NATURE OF MANAGEMENT ACCOUNTING
1. Providing accounting information
2. Causes and effects analysis
3. Use of special techniques and concepts
4. Take important decision
5. Achieving of objectives
6. No fixed norms followed
7. Increase in efficiency
8. Supplies information not decision
9. Concerned with forcasting
5. OBJECTIVES OF MANAGEMENT
ACCOUNTING
• Planning and policy formation
• Helpful in controlling performance
• Helpful in organizing
• Helpful in interpretating financial
statement
• Motivating employees
• Helpful in making decisions
• Reporting to management
• Helpful in cordination
• Tax administration
6. TOOLS AND TECHNIQUES OF MANAGEMENT ACCOUNTING
Financial statement analysis
Fund Flow Analysis
Cash Flow Analysis
Budgetary control
Standard costing
Marginal costing
Management Reporting
7. ADVANTAGES OF MANAGEMENT ACCOUNTING
Planning
Controlling
Coordination
Motivating
Organizing
Decision Making
Communicating
8. • Reliance on accounting data
. Based on historical data
. Highly Expensive
. Complicated Application
. Lack of objectivity
LIMITATIONS OF MANAGEMENT ACCOUNTING
9. LIMITATIONS OF FINANCIAL
ACCOUNTING
• It doesn’t provide any timely information
• Ignores important non – monetary information
• It doesn’t provide detailed analysis
• It doesn’t disclose the present value of the business
• It leads to window dressing