Accounting In Relation To Management Function

859 words - 4 pages

Management accounting can be viewed as Management concerned with Accounting. Basically, it is the study in order to the management of financial accounting, "accounting in relation to management function". This mention the way accounting function can be arranged again so it can be suitable in the background of management movement. The primary task of management accounting is, to reinvent the whole accounting process so that it may work as operational need of the organization. It provides specific information of accounting of present, past and future and this can be beneficial for basis management process. The financial data are so planned and steadily development that they become a unique tool for management decision.
Unlike financial accounting, which produces annual reports mainly for external stakeholders, management accounting generates monthly or weekly reports for an organization's internal audiences such as department managers and the chief executive officer. These reports show the amount of available cash, sales revenue generated, amount of orders in hand, state of accounts payable and accounts receivable, outstanding debts, raw material and inventory, and may also include trend charts, variance analysis, and other statistics. Also called managerial accounting. Management accounting is a profession that involves partnering in management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization's strategy". (T.D. Warfield, 2009)
The subject of management accounting also encompasses the subject of law, knowledge
of which is necessary to find out if the management action is required or not. Management accounting has no set principles such as the double entry system of bookkeeping. In place of generally accepted accounting principles, the philosophy of cost benefit analysis is the core guide of this discipline. It says that no accounting system is good or bad,, but is can be considered desirable so long as it brings incremental benefits in excess of its incremental costs. Applying management accounting principles to financial matters can arrive at no single perfect solution. It is, therefore, an inexact science, which uses its own conventions rather than standardized principles. The facts to be studied here can be interpreted in different ways and the precision of the inferences depends upon the skill, judgment and common sense of different management accountants. It occupies a middle position between a fully matured and an infant subject. Since management accounting is managerially oriented, its data is selective in nature. It focuses on potential opportunities rather than opportunities lost.
The data is operative in nature catering to the operational needs...

Find Another Essay On Accounting in Relation to Management Function

Principles of Community Development in Relation to Sustainable, Community Based Natural Resource Management

2539 words - 10 pages resources (forests, land, water, biodiversity) within a designated area (Donnay and Webbie, 2011). However the basis of CBNRM lies in the community development process where collective action is required to have an effective CBNRM program. CBNRM programs are implemented worldwide and they aim to spur rural development while improving natural resource management (Boggs 2000; World Wildlife Fund for Nature 2006). In this paper, I will discuss how the

Society in relation to Stakeholder Theory

1170 words - 5 pages the outcome.However, Freeman's stakeholder theory is limited, as management cannot proceed beyond the first two preparatory steps. Nevertheless, SST can further guide management to the very end of decision-making.Our adventure begins in the "synthesis" stage. Here different options are formed based on the three business activities. These options are created, keeping in mind the framework of society, utilitarianism, justice and virtue ethics within

Death and Dying in Relation to Buddhism

2759 words - 12 pages Although people in general may have different views and/or ideas on death and dying, is it possible to come to some kind of consensus on its definition? In this essay paper titled, “What Is the Meaning of a Good Death?” I will focus on its definition; discuss where this idea came from and its relation to a traditional Buddhist death. Based on class lecture readings from RLCT 2066 (Death, Dying & Spirituality) and research completed on the

The Bible in Relation to Slavery

2345 words - 9 pages it has changed things cultural. The importance of why slavery and the Bible are connected is to look at how it is part of social justice. In order to grasp the relation, the origins of movement have to be brought to light for all to understand. It is known by most that slavery exists in the Bible, but that it justifies the act is not correct. In fact it has the opposite effect. The stories found in exodus, for example, have been the

Modern Art in Relation to Graphic Design

898 words - 4 pages History of Design Name Tran Thinh Thu (Harry) How Modern Art in relation to Graphic Design Table of Content I/ Introduction - 1 II/ How Modern Art relations to Graphic design - 2 III/ Conclusion - 9 IV/ Reference - 10 I/ Introduction: Art has been developed over thousand years. Between Art and Design, there are so many differences and similar to each other. In the following paragraphs, I am going to explain the relationship

Food Production in Relation to Climate Change

1320 words - 5 pages Climate change is currently one of the greatest challenges facing our species. This case study report will examine issues related to food production in relation to climate change. In this regard, the focus will be on the Peace River Country, which is a parkland region that spans from northwestern Alberta to the Rocky Mountains in northeastern British Columbia and around the Peace River. As part of its examination, this report will explore the

Fast Food In Relation to Obesity

2172 words - 9 pages and neighborhoods. In a recent study done, talked about in the article “Childs Body Max Index, Obesity, and Proximity to Fast Food Restaurants”, by Jennifer Mellor, she examined the relationship between obesity in relation to the location of fast food restaurants. The researchers did research on children who were too young to have their license and who were not allowed to leave school during lunch and had to stay on campus. The study concluded

Use of performance indicators in Management Accounting

2863 words - 11 pages subjects in question are people but still in the right hands they are effective tools which if used by persons in managerial positions can enable them to realise the full potential of their organisation.BibliograpyDrury C. Costing : an introduction 1998Drury C: Management and Cost accounting 1988Bromwich M and Hopwood, A.G. research and current issues in management accounting 1986Bromwich, M and Bhimani, A, Management accounting: Evolution not

Attempting to Define Drama in Relation to Theatre

6674 words - 27 pages Attempting to Define Drama in Relation to Theatre The question asked is 'what is drama?' Can we truly define it? Is there a 'textbook' definition of something that can be so personal? What is drama in relation to theatre? Why is drama so important? What are its uses, its aims? Some have said that drama develops self-esteem and encourages creativity

Health Policies in Relation to Nurse to Patient Ratio

2647 words - 11 pages (New England, 2005).Policymakers in other states may wish to consider a well-designed acuity-based ratio system as an alternative to minimum nurse-to-patient ratios (New England, 2005). Many states have regulations that require hospitals to use patient classification systems to determine nurse staffing, but these regulations face much criticism, as discussed above. Although many of these regulatory systems do not function well today, they could

Code of Ethics in Management Accounting and Financial Management

516 words - 2 pages Code of Ethics in Management Accounting and Financial Management When faced with major problems and dilemmas in management accounting and financial management, practitioners look to the 'standards of ethical conduct' for practitioners of management accounting and financial management. While looking at ethical standards one has to look at four different areas they are competence, confidentiality, integrity, and objectivity. These four areas

Similar Essays

Introduction To Management Accounting Essay

596 words - 2 pages MANAGERIAL AND FINANCIAL ACCOUNTING AND THEIRRELEVANCE IN BUSINESSWEEK 1: INTRODUCTION TO MANAGEMENT ACCOUNTINGBYNAME: ISRAEL OHIADATE: 18TH JANUARY 2014.MODULE: MANAGING FINANCEINSTRUCTOR: Albert SalinasINTRODUCTION:Financial decisions are reached based on accounting information. These information are usually of a quantitative nature and helps the manager in an organization to determine when to either increase or decrease the price of a product

Introduction To Management Accounting Essay

576 words - 2 pages .17). The main purpose of accounting information is to aid in informed decision making by managers. Management accounting can be defined as a process of identifying, classifying, collecting, analyzing and communicating financial information for decision making and for accounting information to be of use to the manager, it should be relevant, reliable, comparable, understandable and above all, it should be regarded a material (Atrill & McLaney

Crime In Relation To Sustainability Essay

1552 words - 6 pages Crime in Relation to Sustainability When discussing the sustainability of a community, we must consider the economic, social, and environmental well-being of the community and how these affect present and future residents. The social aspect of community sustainability relates to the rise and fall of crime rate, volunteer effort, and the number of people running for offices that represent the community. The economical aspect relates to the

Poverty In Relation To Welfare Essay

1363 words - 5 pages United States spend less than a third of what is spent in Austria, German, or Belgium. Sweden and Finland spend four times as much as the US on its antipoverty programs. The United States used to main components in its antipoverty attempt; social insurance and social assistance. Social insurance, or the institutional approach, includes programs to deal with specified risks in relation to employment, such as old age, death, disability, and work