Advanced Management
Accounting
Module 1
, Module 1 - Introduction
Management accounting
Scope and significance
Management accounting Vs Cost accounting
Techniques of management accounting
Cost control
Cost reduction
Cost management
, Management Accounting
Management accounting is comprised of two words managemen
accounting. It is the study of managerial aspect of accounting.
The emphasis of the management accounting is to redesign accou
in such a way that it is helpful to the management in formation of p
control of execution and appreciation of effectiveness.
It is the system of accounting which helps management in carryin
its functions more efficiently.
In other words, management accounting refers to any and
accounting techniques which may be helpful to managemen
discharging its functions, namely planning, controlling, decision m
and ensuring optimum utilization of resources.
It is generally viewed as management oriented accounting.
, Definitions
Anglo-American Council of Productivity: “ Management accou
is the presentation of accounting information in such a ways as to a
management in the creation of policy and the day-to-day operation
undertaking”.
Robert N Anthony: “ Management accounting is concerned
accounting information that is useful to management” .
The American Accounting Association: “ Management Accou
includes the methods and concepts necessary for effective planning
choosing among alternative business actions and for control throug
evaluation and interpretation of performances”.
Accounting
Module 1
, Module 1 - Introduction
Management accounting
Scope and significance
Management accounting Vs Cost accounting
Techniques of management accounting
Cost control
Cost reduction
Cost management
, Management Accounting
Management accounting is comprised of two words managemen
accounting. It is the study of managerial aspect of accounting.
The emphasis of the management accounting is to redesign accou
in such a way that it is helpful to the management in formation of p
control of execution and appreciation of effectiveness.
It is the system of accounting which helps management in carryin
its functions more efficiently.
In other words, management accounting refers to any and
accounting techniques which may be helpful to managemen
discharging its functions, namely planning, controlling, decision m
and ensuring optimum utilization of resources.
It is generally viewed as management oriented accounting.
, Definitions
Anglo-American Council of Productivity: “ Management accou
is the presentation of accounting information in such a ways as to a
management in the creation of policy and the day-to-day operation
undertaking”.
Robert N Anthony: “ Management accounting is concerned
accounting information that is useful to management” .
The American Accounting Association: “ Management Accou
includes the methods and concepts necessary for effective planning
choosing among alternative business actions and for control throug
evaluation and interpretation of performances”.
