Management Accounting and Systems

MANAGEMENT ACCOUNTING
LO1, LO2

Covered content
• Introduction
• Management accounting and systems
• Difference between management and financial accounting
• Management accounting reports
• Management accounting techniques
• Conclusion
• References

Introduction
This presentation covers information about management
accounting system, different types of reporting that help in
dealing with various financial problems. Various techniques
of management accounting also defined in this presentation.

Management accounting and
Systems
Managerial accounting can be defined as the tools and
techniques that prepare and present available data and
information in such a professional way. It may help the
management in order to make its planning and decisions in
an effective manner so that efficiency and performance can
be attempt at its fullest.

At the beginning of nineteenth century, big private
organizations felt the necessity of a procedure that can
effectively measure and control over internal production
centres in order to survive in economy. Managerial
accounting plays a crucial role in managing and
operating internal activities of an organization.
Origin, Role and Principles of
Management Accounting

Difference between Financial and
Managerial Accounting:
Aspects Financial Accounting Management Accounting
User Financial accounts are prepared to
provide information to external
stakeholders.
Managerial accounts are creates to help
the internal users, specially management.
Format An specific formate provides by the
governance is followed in preparation of
these statements.
These statements are not mandatory to
be prepared hence haven't any particular
format.
Data This approach only covers funds and
money related data and information.
Monetary as well as non-monetary
material is included in this accounting
process.