Management accounting, Financial Management

Management Accounting:

Management accounting on the other hand tends to focus internally. Reports generated through management accounting processes will be used by the organisation's management to assist in planning and control.

Rather than focusing on the past (as is the case with financial accounting), management accounting attempts to take information from the past and projects it into the future. The primary management accounting report is the budget, and reports analysing actual results against budgeted targets.Management accounting uses historical data to assist in establishing financial objectives, and allows managers to make rational management decisions to achieve those objectives.

Management accounting reports usually provide great detail and cover much shorter periods of time (sometimes weekly).  This allows managers to act quickly and decisively if required.

The major differences between financial and management accounting can be summarised as follows:

Financial Accounting

Management Accounting

Information for external users

General purpose

Long time periods (FY)

Reports on the past

Required by law

Subject to accounting standards

Focuses on objective data

Used primarily by internal users

Usually focused on specific purpose

Short periods (monthly, weekly)

Past and future

Not required by law

Not compelled to meet standards

Can utilise subjective data

Posted Date: 10/1/2012 3:57:29 AM | Location : United States







Related Discussions:- Management accounting, Assignment Help, Ask Question on Management accounting, Get Answer, Expert's Help, Management accounting Discussions

Write discussion on Management accounting
Your posts are moderated
Related Questions
Floaters that can be classified under this head are: 1. Stepped Spread Floaters 2.  Extendible Reset Bonds

Types of Financial Assets Majority of financial assets used worldwide are in the form of deposits, stocks and debt. Deposits Deposits can be made either with banking or

#pseudocode for finance class ..

discuss the applicability of an operating cycle considering broilers?

How does price serve as a signal to resource owners? While consumers decide that a good or service is much more appealing than before, demand rises.  This makes a shortage at the

evaluate the importance of leverage in financial management of a small scale company

Scenario: Brands and businesses in just about every industry are in a state of war with their competitors through promotions and marketing strategies. Majority of renowned brands

Evaluate the firm’s financial standing for the past 5 years: • Undertake a financial and strategic analysis of its performance: o Use the Assignment Questions for guidance ON

Dow Jones Global Index (DJGI) The DJGI aims to cover 95% of market capitalisation at country level. As with FTSE and MSCI, there are the same 23 developed markets, but with gre

T = 520O per week. L=60000. Standard deviation = 7500 R =0.0004.F =50.Find the optimal average cash balance base don the miller orr model