Management and

Accounting
Student ID: SSS/CBC/19/167
Table of Contents
Introduction- Slide 3

Principles of management accounting- Slide 4

Identify the Role of management accounting system- Slide 6

Methods and techniques used in management accounting- Slide 7

Importance of  Management Accounting- Slide 8

Conclusion- Slide 9
Introduction
Managerial accounting is the type of accounting that provides financial
information to managers and decision-makers within a company.
Managerial accounting often involves
various financial metrics, including
revenue, sales, operating expenses, and
cost controls.
Managerial accounting helps companies
plan, forecast, and budget at an enterprise-
wide level to ensure the company's long-
term success.
One simple definition of management
accounting is the provision of financial and
non-financial decision-making information
to managers
Principles of management accounting
Designing and Compiling
Accounting information, records, reports, statements and other evidence of past, present or
future results should be designed and compiled to meet the needs of the particular business
and/or specific problem

Control at Source Accounting

The performance of individual workers, details of materials issues and utilization and usage
of services are prepared in the form of quantitative and qualitative information. In this way,
control can be exercised over employees, materials and service providing devices.

Use of Return on Investment

Return on investment is otherwise called as Return on Capital Employed. The rate of return
shows the efficiency of the business concern. For this purpose, the capital employed is
calculated in terms of real money value.
Principles of management accounting
Utilization of Resources
The available resources should be effectively used. The reason is that
some resources are available in plenty only in reason and some other
resources are available in scarcity throughout the year. Hence, the
management accounting system should be ensure proper utilization of
available resources.

Integration
It means that all the required information of the management is
integrated so that they can be used effectively at the maximum and at
the same time, the accounting service is provided at minimum cost.
Identify the Role of management
accounting system

Stewardship Accounting
Long-term and Short-Term Planning
Developing Management Information System
Maintaining Optimum Capital Structure
Participating in Management Process
Control
Decision-Making
Completing and reviewing tax returns
Methods and techniques used in management
accounting
Financial Planning:

Analysis of Financial Statements:.

Historical Cost Accounting:

Budgetary Control:

Marginal Costing:

Funds Flow Statement:

Cash Flow Statement:

Decision Making:

Revaluation Accounting:
Importance of  Management Accounting
Planning: In management accounting, the financial information and non-financial information is
presented at regular intervals say weekly,  fortnightly to the management. This presentation includes
forecasts, budgets, and in-depth analysis. Hence it assists the management in planning the business
activities.

Decision making: Since management accounting presents various charts,  forecasts, and analysis
the management uses it for decision making.

Identify early signs of problems: If a product is not performing well the management can identify it
early on as the accounts are presented at regular intervals. This will aid in overcoming the constraints
early on and avoiding future losses.  

Strategic management: Based on the information presented in management accounting, the management
can make decisions about continuing a product or modifying the sale strategy. Since management accounting is not
regulated by any law,  the management can decide the areas that require more analysis, investigation and
accordingly draw up strategies.
Conclusion
Management accounting information is effective for decision making .Different set of
information is gathered within this system.

Another key role of management accounting is to help managers decide on the prices of
products, by providing all the information regarding costs, market factors, and profitability.
Similarly, management accountants can help determine the lifecycle of current products and
the viability of new products too.

Essentially, management accountants provide key insights that help a company’s

management team make many of their decisions. They also support decision making within a
company by providing a wealth of financial and statistical information, often assisted
by powerful accounting software.
References
(Burns, Quinn, Warren & Oliveira, Management Accounting, McGraw-Hill, London, 2013)

https://www.accountingcapital.com/basic-accounting/management-accounting/

https://www.yourarticlelibrary.com/accounting/management-accountant/7-roles-of-managemen
t-accountant/65109

Amey, L.R. and Egginton, D.A. (1973) Management Accounting: A Conceptual

Approach. Longman, Harlow, Essex.

Berry, A.J. and Otley , D:T. (1975) The aggregation of estimates in hierarchieal
Organizations , Journal of Management Studies, May, 175-93.

Alino, N.U. & Schneider, G.P. 2012, "Conflict reduction in organization design: budgeting and accounting
control systems", Academy of Strategic Human Resources Management Journal, vol. 11, no. 1, pp. 1.
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