ACCOUNTING
INTRODUCTION
Management accounting or managerial accounting is
the process of identifying, analyzing, recording and
presenting financial information that is used for
internally by the management for planning, decision
making and control.
In contrast tofinancial aacounting, managerial
accounting is concerned with providing helpful
information and reports to internal users such as
managers and entrepreneurs etc. so that they can
control and plan the business activities.
SCOPE OF
MANAGEMENT
ACCOUNTING
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 to help management in its
functions of planning, directing, controlling and areas of specialization
included within the admit of management accounting. The scope of
management accounting can be studied as follows:
Financial Accounting
Financial accounting forms the basis for analysis and interpretation for
furnishing meaningful data to the management.
Cost Accounting
Cost accounting is the process and techniques of ascertaining cost.
Planning, decision making and control are the basic managerial functions.
Evolutionary Stage
Management accounting is still in a development stage and has not
yet reached a final stage. The techniques and tools used by this
system give varying and differing results. It is still named as internal
accounting and/ or operational accounting.
DIFFERENCE BETWEEN
FINANCIAL & MANAGEMENT
ACCOUNTING
Management Accounting
Financial Accounting
Format:
Amanagement accounting
systemproduces information that is
used within an organization, by
managers and employees.
Focus:
Users:
department:
DIFFERENCE BETWEEN
COST & MANAGEMENT ACCOUNTING
Cost Accounting
Management Accounting
Amanagement accounting
systemproduces information that is
used within an organization, by
managers and employees.
Time span:
Objectives:
Accounting process:
Center of importance: