Scope and Techniques of Accounting

1. MANAGEMENT
ACCOUNTING
BY
Mehedi Hasan
To
Roushan Ara Sultana
Assistant Professor
FBA, USTC

2. MANAGEMENT ACCOUNTING
 Accounting that
concentrates on reporting
to people inside the
business entity is called
“Management Accounting”
.
 provide information to
employees, managers,
owner-manager
and auditors.
 Management accounting is
concerned with accounting

4. Scope of Management Accounting
cont...
The scope or field of management
accounting is very wide and broad based
and it includes a variety of aspects of
business operations. The main aim of
management accounting is as follows;
Financial Accounting: Management
accounting is mainly concerned with the
rearrangement of the information
provided by financial accounting.
Cost Accounting: Cost accounting is
the process and techniques of
ascertaining cost. Planning, decision
making and control are the basic
managerial functions.

5. Scope of Management Accounting
cont...
 Budgeting And Forecasting:
Budgeting means expressing the plans,
policies and goals of the firm for a
definite period in future. Forecasting on
the other hand, is a prediction of what
will happen as a result of a given set of
circumstances.
 Inventory Control
Inventory is necessary to control from the
time it is acquire till its final disposal as it
involves large sum. For controlling
inventory, management should determine
different level of stock. The inventory
control technique will be helpful for taking
managerial decisions.

6. Techniques in management
accounting

7. Key Management Accounting
Techniques
Cost Allocation Technique
• Job costing
• process costing
• activity-based costing
• throughput costing
Forecasting Models Technique
• These models may also be used to determine
the potential market demand for producing
products and the expected level of sales for
each item produced by the company.
Assist Business Decisions Technique
• By using net present value, return on
investment or a basic payback model helps
managers understand the financial impact of
business opportunities and how to make the
best business decision based on the

8. Thank You Everybody