What is Management Accounting ?

India Discussion in 'General Accountancy Discussion' started by aCCOUNTING503219, Mar 31, 2018.

  1. aCCOUNTING503219

    aCCOUNTING503219

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    Can someone please tell me what this subject is about ?

    It has these chapters in my text book

    Introduction to management accounting
    Budgetary control
    Standard costing
    variance analysis
    marginal costing
    cost volume profit analysis
    analysis and interpretation of financial statements
    ratio analysis
    working capital management
    fund flow statement
    capital budgeting
    management of profits / dividend policy
    overview of developments in accounting .

    How should i start learning all these ? i have some starting trouble .
     
    aCCOUNTING503219, Mar 31, 2018
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  2. aCCOUNTING503219

    Drmdcpa VIP Member

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    It is the course that separates the accountants from the bookkeepers. It is sometimes referred to as cost accounting. Generally starting from the introduction and moving on to chapter one is an appropriate path.
     
    Drmdcpa, Apr 1, 2018
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  3. aCCOUNTING503219

    aCCOUNTING503219

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    Thanks for the points .
    So financial accounting is about book keeping and this one is not like that .OK

    I went through half of the introduction to management accounting

    It says Management accounting is about analysis and interpretation of information in the Financial accounting and Cost accounting

    For the purpose of Forecasting future objectives of the business
     
    aCCOUNTING503219, Apr 2, 2018
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  4. aCCOUNTING503219

    John Baker

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    There is a distinct difference between the two - Financial Accounting and Managerial Accounting.
    Both require specialties that have unique educational and practical applications. On the other hand,
    in some enterprises, one person can where both hats.
    So let me address the Managerial Accounting in some depth. I'm addressing your question beyond
    the text book and academic experiences.
    Managerial Accounting is more specific to an industry and that industry's identity. Managerial Accounting
    primarily deals with the planning of long term and short term qualitative and qualitative ($) activities of
    operations - specific to an industry. Payroll, banking and other disciplines that are overlapping with
    Financial Accounting, enterprise to enterprise, are not so easily carried over by Managerial Accounting.
    Also, employment opportunities in Financial Accounting are far more numerous because of the ease
    of carryover experience, again, because of the accounting disciplines shared by many enterprises.
    Managerial Accounting on the other hand for say- construction, heavy machining, transportation,
    and meat packers, requires more focus on the industry rather than the accountancy.
    Why? Because every managerial sector in the enterprise interacts very close with the Managerial
    Accountant
    for the credibility of two very important sections of the income statement and the balance
    sheet. For the income statement it's The Cost of Services/Cost of Goods Sold, and on the balance
    sheet it's, inventories. Hence the more specific the enterprise is in an industry, the more specific the
    Managerial Accountant has to be to that particular industry.
    Financial Accounting can be more generic. In that regard, Financial Accounting addresses payroll/payroll taxes and all those related disciplines, banking - long and short term financing, accounts payable and
    receivable, credit and collections, letters of credit, currency exchanges, taxes, total composition of general purpose statements an support schedules, and so on.
    Now this is all in generalities, to be sure, but enough to go on to give you some idea of the
    what-n-why of the two disciplines. Again, in some enterprises, one person can where both hats.
    .
     
    John Baker, Jan 18, 2019
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  5. aCCOUNTING503219

    davidlee21

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    This book is about cost accounting.
    Where did you find this book? Is this your Text book?
     
    davidlee21, Jan 19, 2019
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