MANGEMENT ACCOUNTING

1. Introduction of
management accounting
Submitted to: Submitted by:
Dr. Sunil Sir
Rishika Mattoo
150602058

2. nctions 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

5. Nature and purpose of
anagement 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. ope 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. ntents 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. ools and techniques of
nagement 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
ccounting 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.