DEPARTMENT : BUSINESS ADMINISTRATION TOPIC

Transcript:DEPARTMENT : BUSINESS ADMINISTRATION TOPIC:
DEPARTMENT : BUSINESS ADMINISTRATION TOPIC :MANAGEMENT ACCOUNTING FACULTY NAME : A.ABDUL HAKEEM MEANING : 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. Ojectives Assistance in Planning and Formulation of Future Policies Helps in the Interpretation of Financial Information Helps in Controlling Performance 4. Helps in Organizing Helps in the Solution of Strategic Business Problems Helps in Coordinating Operations Helps in Motivating Employees Communicating Up-to-date Information Helps in Evaluating the Efficiency and Effectiveness of Policies CHARACTERISTICS OR NATURE OF MANAGEMENT ACCOUNTING : It is matter of fact that management accounting is the backbone for every organization. Because it assists the management of organization through providing the relevant and accurate information at the right time for taking rational decisions to short out the business problems. Thus, it is clear that a management accounting should possess these essential characteristics:- Helpful in Decision Making:- It is an important feature of management accounting. In fact, it helps the management of organization by providing relevant and accurate information from various sources (like financial and cost accounting) in order to make sound decisions to remove business problems. Provides Data, Not the Decision:- It only provides required data and information to the management, not the decision. It is up to the management that how they utilize the available data and information to resolving the business problems through taking effective decisions. Selective in Nature:- It is also a potent characteristic of this accounting system. Here selective means, in management accounting a management accountant is only collect those data and information from a variety of alternatives which may create more benefits and easiness to the management in decision making. Hence, it is selective in nature. Assist in Achieving Objectives:- Management Accounting is always assist organization in achieving its predetermined goals. Because it provides detailed information in regarding the weakness and the strength of organization in the form of report, on the basis of that any organization can eliminate recognized weakness (business problems) and may achieve its goal easily. Related to Future:- Management Accounting is an accounting system which is directly related to future course of events. It means by preparing this account any organization can forecast its future on the basis available information in relating the past events (Historical data).