Guide on How to Write University Essays, Courseworks, Assignments and Dissertations

The Concept of Managerial Accounting

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Managerial Accounting is the process of tracking, recording and examining costs associated with the products or actions of an association. Managerial accounting does not track normally acknowledged accounting principles. In managerial accounting, costs are considered in units of currency by convention (icfai 2007[online]). Managerial accounting can also be defined as a kind of cost accounting that covert the supply chain into economic values. Supply chain is nothing but the sequence of events in the manufacture process which results in a product. Managers mostly use cost accounting principles to maintain alternative making to reduce company’s expenses and progress its productivity.

 

MODE OF APPROACHES IN MANAGERIAL ACCOUNTING:

 

           Standard managerial accounting

           Activity-based Managerial Costing

           Throughout managerial accounting

           Marginal Costing in managerial accounting

 

PRINCIPLES OF MANAGERIAL ACCOUNTING:

 

Strategic - Preceding the role of the organization accountant as a strategic co-worker in the association.

Performance management - Improves business by managing and evaluating and thereby giving the performance of the company.

Risk Management - Concentrates on frameworks and practices for recognizing, managing and reporting risks to the achievement of the objectives of the organization. (Hendrik 2005)

 

BENEFITS OF MANAGERIAL ACCOUNTING:

 

• Determining performance

• Dropping or managing costs

• Examining the prices for products and services

• Choosing to approve, change or suspend a plan or action

 

Information on the expenses programs and actions may be used as a source to estimate prospect costs in organizing and evaluating budget requisition is another benefit of managerial accounting. If the financial statements are approved and performed then cost related information serves as a practical feedback on presentation for managerial accounting (Wikipedia 2007[online]). Also, cost will be compared to identify or benefits based on assumption for value added and non-value added actions. Dependable information for the programs on cost and activities is critical for the efficient management of a business article’s operations.

 

IMPORTANCE OF MANAGERIAL ACCOUNTING:

 

The main aim of managerial accounting is to improve the efficiency and quality of operations by providing program owners and all others with suitable and applicable cost based performance information to permit for nonstop improvement in distributing the output to outcome the stockholders (allbusiness2007 [online]). Managerial accounting has been developed and used with all from the beginning times to help all the directors to understand the costs of running a project (Garrison Brewer nd). Modern managerial accounting is created during the industrial revolution during the difficulties of running a large scale business which show the way to the development of scheme for recording and checking costs to help business proprietors and managers to finalize and make conclusions.

 

So, to conclude, for any business unit starting from the smallest business activity to the largest multinational business to be succeeded requires the use of managerial accounting concept and practices (Hendrik 2005). This accounting provides data to owners for preparation and scheming of rating products and services for customers too. The main focus of managerial accounting is to help the managers for making better decisions. Because of all these reasons, businesses and organizations hire on managerial accountants and thereby, they are becoming integral persons of decision making teams instead of just data providers.

 

 

References:

 

Managerial Accounting by Hendrik

Managerial Accounting by Ray H Garrison and Peter C. Brewer

Accounting practices by Robert

www.allbusiness.com [online source]

www.wikipedia.org/wiki/Accounting [online source]

icmr.icfai.org/casestudies [online source]

C/F/229. Accounting and Finance for Managers: new project development

C/F/223. Setting up a shoe shop in London: costs decisions

S/F/111. Comparison of cost accounting, management accounting and strategic management accounting with relation to ice cream manufacturer

C/F/182. Absorption vs. Activity-based method

C/F/162. The decision making model.

E/F/89. STRATEGIC MANAGEMENT ACCOUNTING: TARGET COSTING

C/F/170. UK Statement of Principles (SOP)

C/F/171. Compare and contrast the preliminary views discussion paper 'The Objectives of Financial Reporting and Qualitative Characteristics of Decision-useful Financial Information' with the existing UK Statement of Principles (SOP)

C/F/172. Critically evaluate the stewardship purpose and the decision-usefulness purpose of corporate reports

C/F/173. Select one accounting standard and discuss the extent to which it reflects the principles in the SOP and explain any differences to international practice.

E/F/44. Agency theory and three types of agency costs

E/F/39. Use of accounting information in management

P/F/493. Budgeting: formats, purpose, practices

P/F/487. Issues of executive compensation

P/F/465. Use of ABC/ABM system in Ford MNC

S/F/74. Management Accounting for managerial decision making

P/F/429. Principles of Activity Based Costing

S/F/67. Management Accounting: Evaluation new course launch for private college

E/F/29. Functions of management accounting (MA)

P/F/405. Role of management accounting in SME

P/F/402. Paradigms in management accounting

E/F/25. New management systems analysis (JIT backflush and Target costing)

P/F/386. Management Accounting Systems: contingency approach

P/F/362. Concept of management accounting

E/F/14. Management Accounting report on Mirabeau Ltd

S/F/55. Critical Evaluation of the Balanced Scorecard Model

P/F/337. Budgeting problems and solutions

S/F/51. "When considering the various cost concepts and costing techniques, many of the traditional ones developed to determine product costs for the twin accounting functions of inventory valuation and profit measurement, such techniques have been criticized for their lack of usefulness to managers for decision making. Critically discuss this statement.

P/F/294. Target costing and life cycle closing

P/F/290. Theoretical background of strategic management accounting

P/F/287. Cost and management accounting

C/F/75. Management Accounting of Fallen Limited

C/F/73. The role of financial and managerial accounting information

S/F/35. Analysis of make or buy. fixed vs. variable, & Throughput

P/F/207. Bedford Appliances Plc: The Budget Analysis

P/F/142. Optimum Policies for the Management of Working Capital

P/F/110. Annual General Report: is it a poor aid to economic decision making?

P/F/89. A basic idea of Management Accounting is the need for "different costs for different purposes".

P/F/28. Managerial accounting.

C/F/18. Analyse the following areas of managerial accounting with examples: Absorption Costing and Variable Costing, Breakeven analysis, Standard costs and variance analysis, Budgeting.

P/F/75 The Principals of Accounting

P/F/85. Dissertation. Is Compensation Cost the Motivation of Earning Management?

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