Management Accounting - Meaning, Definition, Characteristics, Scope, Objectives and Function

Meaning� Definition� Characteristics� Scope� Objectives and Function� Financial accounting and Management accounting - Management accounting and Cost accounting - Cost accounting and Management accounting and Financial accounting - Tools and Technics- Advantages and limitations

1. MANAGEMENT ACCOUNTING

2. Management Accounting Financial Accounting Cost Accounting

3. INDEX Meaning Definition Characteristics Scope Objectives and Function Financial accounting and Management accounting Management accounting and Cost accounting Cost accounting and Management accounting and Financial accounting Tools and technics Advantages and limitations

4. MANAGEMENT ACCOUNTING Meaning In management accounting or managerial accounting, managers use the provisions of accounting information in order to better inform themselves before they decide matters within their organizations, which aids their management and performance of control functions.

5. Definition According to Cost and Management Accounts, London, “Management Accounting is concerned with the presentation of professional knowledge and abilities to reveal accounting information which may help to the management in policy formulation, planning and control for the undertakings.”

6. Characteristics of Managerial Accounting Reporting to managers and internal personnel Tailored to specific decision-making tasks Focused on products, departments, and activities Often uses real-time data for quick responses Forecasted outcomes for planning.

7. SCOPE OF MANAGEMENT ACcounting financial accounting : financial accounting provides historical information useful for future planning and financial forecasting. Cost accounting : it provides various techniques of costing which are used in the process of planning and decision-making. Forecasting and budgeting : management accounting exercise the tool forecasting and budgeting in the process of planning, controlling and decision-making. tax accounting and tax planning : the analysis of implication of tax provisions on future project comes under management accounting.

8. Objectives of Management Accounting

9. Functions of Management Accounting

10. Financial Accounting Management Accounting Requirement Mandatory Optional Primary Audience External Investors, Regulators, Tax authorities, etc. Internal Management & decision makers Purpose Communication of financial position Decision making Regulation/guidelines GAAP,IFRS,IAS None Frequency Quarterly, Annual or per period As needed and ongoing Focus Past transaction Information to aid decisions for the future Scope Company wide Narrow per segment, product, etc. as needed. Distinction between financial accounting and management accounting

11. Basis of combarison Cost Accounting Management Accounting Meaning The recording, classifying and summarising of cost data of an organisation is known as cost accounting. The accounting in which both financial and non-financial information are provided to managers is known as management accounting. Information Type Quantitative Quantitative and Qualitative Objectives Ascertainment of cost of production Providing information to managers to set goals and forecast strategies. Scope Concerned with ascertainment, allocation, distribution and accounting aspects of cost. Impart and effect aspect of costs. Specific Procedure Yes No Recording Records part and present Data. It gives more stress on the analysis of future projections. Planning Short range planning. Short range and long range planning. Interdependency Can be installed without management accounting. Cannot be installed without cost accounting.

12. Tools AND TECHNICS OF MANAGEMENT ACCOUNTING 1. Financial planning 2. analysis of financial statements 3. historical cost accounting 4. standard costing 5. budgetary control 6. marginal costing 7. decision accounting 8. revaluation accounting 9. ratio accounting 10. internal auditing 11. management information system 12. statistical techniques

13. Submit by Banumathi . n THANK YOU