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Explain the meaning of management accounting Management accounting is a profession that involves partnering in management decisionmaking,devising planning and performance management system,and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization strategy.

List the importance of management accounting -Decision-making -Planning -Directing operational activities -Controlling Distinguish between management accounting and financial accounting Management accounting Financial accounting Primary users Manager who deeply involve External userswith day to day operations use shareholders,creditors and managerial information to help investors mainly use financial them make various decisions in accounting information for the management process of decision-making. planning,organizing,directing and controlling. Time frame Focuses on the future. Primarily historical data which composed of measurement of the results of past operations.

Identify the major similarities between financial accounting and management accounting Record keeping Selecting,measuring and accumulating business transactions data. Decisions making To make selection of alternative courses of action regarding the business future. General accounting system Both the information is developed within the same general accounting system for example malaysian information system. What do manager have in common Distinguish between cost accounting and management accounting What is the roles of management accountant in the management process *Planning Management accountant helps to formulate future plans by providing information to assist in decision making such as what products to sell,in what market and at what prices. *Controlling Management accountant will produce performance reports that compare the actual outcomes with the planned for each responsibilty centre.

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*Organizing One of the ways that the management accountant helps during organizing function is through budgeting. *Communicating Management accountant helps to install and maintain an effective communication and reporting system in the organization. Define the meaning of management accounting information Discuss the features of management accounting information -relevant Information must be relevent to the purpose for which it is provided.For the information to be relevent to a decision,it must involve a future event and differ among alternatives. -understandable Information will be little use if it is incomprehensible to its user.Typical users of accounting information may also be adversely affected by the usage of technical jargon found in the information. -timely Concept of timeliness means the information should up to date as possible because old information may not be representative of present and future conditions. -comparable Accounting information is frequently used to make comparisons.Financial performance of year to year or department by department.The accounting information should be prepared consistently so that comparison can be made. -reliable and complete Management accounting information based on estimates and projections,underlying assumptions is important to make it reliable. -with cost-benefit features Preparation of accounting information involves collecting,analysing and interpreting data.This can be costly in monetary terms and time.Only material information is provided for decision-making.

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10 Describe the principle of management accounting information

11 identify the management accounting needs