What Is Management Accounting, Definition, Characteristics, Scope, Function And Full Short Notes

What Is Management Accounting: What is Management Account: Hello friends, today will talk about What is Management Account, definition, characteristics, scope, functions and complete short notes are provided to all commerce students (What Is Management Accounting).

What Is Management Accounting – Definition

It is The Presentation of accounting information in such a ways as to assist management in the Creation of policy and day to day Operation of an Undertaking (What Is Management Accounting).
It is Concerned with accounting information that is useful to management.

Characteristics of Management Accounting

It is Based on Accounting Information.
It is Cause and Effect analysis.
It is Uses Special Techniques and Concept to make accounting data More useful.
It Helps In Taking Various Important Decisions (What Is Management Accounting).
It is Used in Such a Way that, It Helps in Achieving Organization Objectives.
It Is No Fixed Norms Followed.
It is TheSupplies Information to the Management.
It is Concerned With the Future.

Scope Of Management Accounting

1. Financial Accounting

Financial Accounting deals with the Historical Data (What Is Management Accounting).
The Recorded Facts about an organization are useful for Planning the future courses of action.
Planning is Always For the Future But Still it has to be Based an Past and Present Data.

2. Cost Accounting

It is Provides Various Techniques for Determining Cost Of Manufacturing Products.
It use Financial data For Finding out cost of various job, Product or Processs.

3. Financial Management

Financial Management is concerned with the planning and controlling of the financial Resources of the firm.
it deals with raising of founds and their effective utilisation.
Its main aim is to use business funds in such a way that earning are maximised.

4. Budgeting and Forecasting

It Means Expressing the plans, Policies and goal of the enterprice for for a definite period in Future.
Forecasting is a Judgement where as budgeting is an Organizational object (What Is Management Accounting).
Both Budgeting and Forecasting are useful for management accounting in planning Various activities.

5. Inventory Control

It is Use to Denote Stock of raw Material, good in the process of Manufacture and Finished Products.
Inventory has a Special significant in Accounting for determining.
The Study of inventory control will be helpful for taking managerial Decision.

6. Internal audit

Internal Audit System is Neccesary to judge the performance of every Departments.
It’s able to know deviations in Performance.
It helps Management in fixing the responsibilities of different individuals.

7. Tax Accounting

The Present Complex tax system tax planning is an important part of management accounting.
Income systems are prepared and tax liabilities are calculated.
Tax Accounting Comes another preview of management duties.

8. Office Service

It may be required to Control an office.
He will be expected to deal with data Processing, filling, Duplicating, communicating etc (What Is Management Accounting).

Limitaion Of Management Accounting

It is based on data supplied by financial and cost accounting.
It is the knowledge of a number of related subjects.
It is a tendency to make decisions intuitively.
It does not Private an Alternative to administration.
It is a top-heavy Structure.

Function Of Management Accounting

It Established Co-ordinates and maintains an integrated Plan for the Control of operation.
It Measures Performance against Given Plans and Standards.
It Should Evaluate Various Policies and Programmes.