India What is Management Accounting ?

[aCCOUNTING503219]

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 .

 

[Drmdcpa]

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.

 

[aCCOUNTING503219]

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

 

[John Baker]

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.
.

 

[davidlee21]

This book is about cost accounting.
Where did you find this book? Is this your Text book?