introduction to mangement accounting

1. Introduction of
management accounting
Submitted to: Dr. sunil verma
Professor
Sgt university , Gurugram.
Submitted Rishika
Sec A BBA gen
Roll no 150602056

2. Functions of management
accounting
Planning and forecasting
Furnishing information
Not confined merely to financial data
Analysis and interpretation
coordinating
Communicating
Establishing standards of performance
Undertaking special studies
controlling

3. Definition of management
accounting
“The process of identification,
measurement, accumulation, analysis,
preparation and communication of
financial information used by
management to plan, evaluate and
control within the organisation and to
assureappropriate use and accountability
for its resources”

4. origin
❑This concept was not known to the businessworld until
1950.
❑This term was first formally described in a report
entitled “management accounting” in 1950.
❑This report was published by the anglo american council
of productivity management accounting team after its
visit to us in first quarter of 1950.

5. Nature and purpose of
management accounting
❑Analysis and interpretation of data.
❑Planning, decision making and control.
❑Responsibility centres.
❑Future oriented.
❑Serves as yardstick.

6. Advantages of
management accounting
❑Planning
❑Controlling
❑Coordination
❑Performance evaluation
❑Organising
❑Motivating
❑Communicating
❑Decision making

7. Limitations of
management accounting
❑Reliance on accounting data.
❑Highly expensive.
❑Complicated application.
❑Lack of objectivity.
❑Based on historical data.

8. Scope of management
accounting
❑Financial accounting.
❑Cost accounting.
❑Forecasting and budgeting.
❑Tax accounting and pllaning.
❑Internal control and audit.
❑Cost control proceedure.
❑Financial analysisa and interpretation.
❑Reporting to management.
❑Office services.
❑Statistical tools and techniques.

9. Contents of management
accounting
❑Management process is a series of activities involve in
planning, implementation and control. Each phase in
management process require decision making.
❑Management accounting supports managerial decision
making provideing required information.

10. Tools and techniques of
management accounting
❑Financial statement analysis.
❑Fund flow analysis.
❑Cash flow analysis.
❑Budgetory control.
❑Standard costing.
❑Marginal costing.
❑Management reporting.
❑Statistical and operations research techniques.

11. Management
accounting framework
❑Data accumulation is done through financial accounting
and cost accounting systems. Financial records are
maintained through financial accounting systems and cost
records are maintained through cost accounting systems.
❑In management accounting systems, data support is
taken from financial accounting and cost accounting and
data accumulationis carried out from external sources.
Accumulated data arec recllasified as per the requirement
of management decisions making process. Information is
built upb and then communicated to assist the decision
making process.

12. Introduction of
management accounting
Submitted to: Dr. sunil verma
Professor
Sgt university , Gurugram.
Submitted Rishika
Sec A BBA gen
Roll no 150602056