Slide 2: Management accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions.
HISTORY OF MANAGERIAL ACCOUNTING : HISTORY OF MANAGERIAL ACCOUNTING Managerial accounting has its roots in the industrial revolution of the 19th century
Financial accounting requirements burgeoned because of new pressures placed on companies by capital markets, creditors, regulatory bodies, and federal taxation of income
As product line expanded operations became more complex, forward looking companies saw a renewed need for management-oriented reports that was separate from financial reports.
NEED FOR MANAGERIAL ACCOUNTING : NEED FOR MANAGERIAL ACCOUNTING Someone must be responsible for making plans, organizing resources, directing personnel, and controlling operations.
Major three activities:
Directing and Motivating
CODE OF CONDUCT : CODE OF CONDUCT to maintain the highest standards of ethical conduct
DIFFERENCE BETWEEN FINANCIAL, COST & MANAGERIAL ACCOUNTING : DIFFERENCE BETWEEN FINANCIAL, COST & MANAGERIAL ACCOUNTING
ROLE OF MANAGERIAL ACCOUNTING IN AN ORGANIZATION : ROLE OF MANAGERIAL ACCOUNTING IN AN ORGANIZATION
Slide 10: Dual Reporting Relationship