Question

what is management accounting

Answer 1

Answer: Management accounting also is known as managerial accounting and can be defined as a process of providing financial information and resources to the managers in decision making. Management accounting is only used by the internal team of the organization, and this is the only thing which makes it different from financial accounting. In this process, financial information and reports such as invoice, financial balance statement is shared by finance administration with the management team of the company. Objective of management accounting is to use this statistical data and take a better and accurate decision, controlling the enterprise, business activities, and development.

Answer 2

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Management accounting:

• Management accounting is the process of analysing business costs and operations to prepare internal financial report records and account to aid manager decision making process in achieving business goals .

• In Management Accounting managers use the provisions of accounting information in order to better informed themselves before they decide matters with their organisations .

• Management accounting is the provision of financial data advice to a company for use in the organisation and development of its business.

• Management accounting is the presentation of accounting information in order to formulate the policies to be adopted by the management and assist its day to day activities .

Function:

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✍️ Planing

✍️ Organising

✍️ Staffing

✍️ Directing

✍️ Controlling

Example: Raj is the CFO for a manufacturing company , everyday Raj deal with financial decisions that could make or brake the company.As result Hear Voices the business from the perspective of its profits cash Standing and cost.

Types of management accounting

• Product costing and valuation.
• cash flow analysis
• Inventory turnover analysis.
• constraint analysis.
• Financial leverage Metrics .etc

Management accounting is also know as Managerial accounting or. cost accounting.

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