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\u00a0<\/span><\/b><\/p>\n Management accounting is also known as managerial accounting.<\/span><\/p>\n Management accounting is the presentation of accounting information. <\/span><\/p>\n It helps to the management in the creation of policies and day to day operation of the organization. <\/span><\/p>\n From cost accounting and financial accounting, the managements make policy or planning, decision making, control, coordination, motivation etc.<\/span><\/p>\n <\/p>\n <\/p>\n \u00a0<\/span><\/b><\/p>\n According to Robert N. Anthony,<\/span><\/i><\/b> <\/i>\u201cManagement accounting is concerned with accounting information that is useful to management.\u201d<\/span><\/i><\/p>\n \u00a0<\/span><\/i><\/p>\n According to Meigs and Meigs,<\/span><\/i><\/b> <\/i>\u201cManagement accounting involves the preparation and use of accounting information for planning and controlling the operation of the business.\u201d<\/span><\/i><\/p>\n \u00a0<\/span><\/b><\/p>\n \u00a0<\/span><\/b><\/p>\n The main objective of business organization is to earn maximum profit. <\/span><\/p>\n Management accounting provides information to management how to maximize the profit. <\/span><\/p>\n \u00a0<\/p>\n Management accounting helps to management for planning in advance; some planning is:<\/span><\/p>\n What to do,<\/span><\/p>\n How to do,<\/span><\/p>\n When to do,<\/span><\/p>\n Who is to do?<\/span><\/p>\n These plans may be<\/span> short-term or long-term<\/span>, <\/span>introduce new product, increase sales volume in existing market, expand of market, additional fund for long term investment, additional fund for assets replacement etc.<\/span><\/p>\n \u00a0<\/span><\/b><\/p>\n To choose best alternative from more or many choices is called decision; some decisions are:<\/b><\/span><\/p>\n Fixation of price;<\/span><\/p>\n Whether price should be reduced or not to increase sales volume;<\/span><\/p>\n Whether factory should production full capacity or not;<\/span><\/p>\n Determination of most profitable level of production;<\/span><\/p>\n Whether to make or buy spare parts;<\/span><\/p>\n Whether new product should be introduced in the market;<\/span><\/p>\n Whether the product should be exported or not;<\/span><\/p>\n Whether the product should be discontinued from the market;<\/span><\/p>\n Whether new fixed assets should be purchased etc.<\/span><\/p>\n \u00a0<\/span><\/b><\/p>\n Under cost accounting, planning is on estimation basis. <\/span><\/p>\n But in actual, they may different than estimated. <\/span><\/p>\n To find out causes of variances or deviation control is needed. <\/b><\/span><\/p>\n \u00a0<\/span><\/b><\/p>\n Management accounting helps to coordinating between or among:<\/b><\/span><\/p>\n Departments or branches <\/span><\/p>\n Department and sections.<\/span><\/p>\n Staffs etc.<\/span><\/p>\n \u00a0<\/span><\/b><\/p>\n It is the new system of management accounting. <\/span><\/p>\n Under motivation, workers or staffs are encouraged to do work in their responsibility. <\/span><\/p>\n Some motivation factors are:<\/span><\/p>\n Wage or salary paid in time<\/span><\/p>\n Bonus and incentive<\/span><\/p>\n Training and seminar<\/span><\/p>\n Promotion etc<\/span><\/p>\n \u00a0<\/span><\/b><\/p>\n \u00a0<\/span><\/b><\/p>\n ###########<\/span><\/p>\n Click on the link for <\/span>YouTube<\/span><\/b> videos<\/span><\/p>\n<\/td>\n<\/tr>\n Cost Reconciliation Statement <\/span><\/p>\n<\/td>\nManagement Accounting | Meaning of <\/b><\/span>Management<\/b><\/span> Accounting\u00a0<\/b><\/span><\/span><\/span><\/h2>\n
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<\/p>\nDefinition of management accounting <\/span><\/b><\/h3>\n
Objectives of Management Accounting<\/span><\/b> <\/b><\/h2>\n
Planning<\/span><\/b><\/b><\/h3>\n
Decision-making<\/span><\/b><\/h3>\n
Controlling<\/b><\/span><\/span><\/h3>\n
Coordinating<\/span><\/b> <\/b><\/h3>\n
Motivation<\/span><\/b> <\/b><\/h3>\n
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