Chapter 1 ma note
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This document provides an overview of management accounting. It defines management accounting as accounting information used by managers to run a company. Management accounting is concerned with providing internal users like managers with information, unlike financial accounting which provides information to external users. Key differences between the two types of accounting are discussed, such as users, timing of reports, and rules. The document also outlines management functions like planning, directing, and controlling, and how management accounting information supports these functions through reporting, decision making, and evaluation. Finally, characteristics of good management accounting information are listed.
Chapter 1 ma note
- 1. MANAGEMENT ACCOUNTING 1 MKM 1013 SAJIAH YAKOB 2013
- 2. CHAPTER 1
- 3. WHAT IS MANAGEMENT ACCOUNTING •Concern with providing information to managers and people inside the organization •Who is managers???? ; who is people inside the organization •Managers need information to run the company •Management accounting is a part of accounting •Management accounting information used for all types of business •What types of business????? -Xx -Xx -xx Questions: •What are others part of accounting •Give example management accounting information
- 4. DIFFERENT BETWEEN FINANCIAL ACCOUNTING AND MANAGEMENT ACCOUNTING DIFFERENT MA FA Main users External users. Give examples Internal users. Give examples Timing Focused on history information. Financial reporting. Prepared financial statement for last year in the current year Focused on future. Prepare budget report Production report Types and frequency of reports issued Financial statement consists of 1.________ 2._________ 3._________ When? In 6 months In 12 months Internal reports such as department performance report, budgeting report When? At anytime when needed Rules and regulations Must comply with Malaysian Accounting Standard Board (MASB) Company Acts (Schedule 9) General accepted accounting principle Reporting purpose Concern give general information to for internal and external users Give information to specific group of people in the organization
- 5. ACCOUNTING INFORMATION FUNCTION IN MANAGEMENT •Accounting information used by management for implementing management function •Managers used accounting information for the purposed of: -Plan and control business operation. Evaluate operation performance/staff performance -Making decision short and long term. Give examples -Reporting: financial position/operation position
- 6. MANAGEMENT FUNCTION PLANNING DIRECTING & MOTIVATING CONTROLLING •What is planning, directing and motivating and controlling •Planning is identify alternatives, select the best alternatives in order to achieve company objectives •Directing & motivating: oversea day to day activities, keep company on track, ability to motivate and effectively direct people •Controlling: ensure the plan is being followed. Feedback –signals whether operation are on track
- 7. Planning & control cycle Formulating long and short term plans (Planning) Implementing plans (directing & motivating) Measuring performance (controlling) Comparing actual to planned performance (controlling)
- 8. CHARACTERISTICS MANAGEMENT ACCOUNTING INFORMATION •ACCURACY •TIMING •EASY TO UNDERSTAND •RELEVANT •CAN BE COMPARED •OBJECTIVE •RELIABLE •COST EFFECTIVE •COMPLIMENT
- 9. HOMEWORK 1: Question 1: Definition management accounting from 3 authors? Question 2: Different between management accounting and financial accounting? Question 3: List types of cost?
- 10. ASSIGNMENT 1: Question 1: ROLE OF MANAGEMENT ACCOUNTANTS Question 2: GIVE DEFINITION AND EXAMPLE i. DECENTRALIZATION ii. LINE POSITION iii. STAFF POSITION iv. CHIEF FINANCIAL OFFICER