Management Accounting

MANAGEMENT
ACCOUNTING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Managerial accounting refers to process to analyse business cost and the operations for
preparing the internal financial records and reports and for accounting to help managers to make
decisions for achieving the goals and objectives of business(Otley, 2016). In other terms, it refers
to process of using financial and the costing data and than making effective translation of data
into the useful and meaningful information for executives and management of the business.
Report will involve critical analysis of needs and the process of preparing the budgets. This will
be providing detailed analysis about the modern budgeting processes like activity based
budgeting and balance score card.
MAIN BODY
Management accounting is being used from centuries to calculate the costs of product.
Accounting techniques were even used by the households and businesses like preparation of cash
budgets or activity based. These budgeting techniques helped them to spend as their available
and framed budgets. This helped businesses and households in preventing going out of cash due
to overspending. As the time have changed management accounting techniques have evolved
and enhanced as per the needs of businesses. Till data various management accounting theories
and concepts have been developed by various authors.
Managers of the enterprise use management accounting informations for properly
informing themselves before any decision is taken about the matter within the organisations. This
helps management in managing and performing the control functions (Quattrone, 2016). As per
“Institute of Management Accounting” it is a profession involving partnership in management
decisions making, to devise planning and performance management system and to provide
expertise in the financial reporting & controls for assisting the management in formulation and
the implementation of organisational strategy.
Management accountants looks at events happening in and around the business
considering needs of business. These data and informations are used for emerging estimates.
Cost accounting refers the process of translating these data and estimates into knowledge which
will be used ultimately for guiding the decision-making process. Consistent to role in modern
corporations, managerial accounts are having dual reporting responsibility. As strategic partner
& as provider of decisions based over operational and financial informations. Managerial
accountants have responsibility of managing the business teams and at same time for reporting
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