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Management Accounting Concept - Theory
Management Accounting Concept - Theory
Management
Management is the process of allocating an organization's inputs, including
human and economic resources, by planning, organizing, directing, and
controlling for the purpose of producing goods or services desired by customers
so that organizational objectives are accomplished.
Accounting
Accounting is and information system that identifies, records, and communicates
the economic events of an organization to interested users.
Management Accounting
I. M Pandey - The part of accounting system which facilitates the management
process of decision-making is called Management Accounting.
Decentralization
Decentralization is the delegation of decision-making authority throughout an
organization.
1. Competence:
a. Maintain appropriate level of professional competence by ongoing
development of knowledge and skills.
b. Prepare complete and clear reports after appropriate analysis.
c. Follow applicable laws, regulations, and standards.
2. Confidentiality
a. Do not use confidential information for personal advantage
b. Ensure that subordinates do not disclose confidential information
c. Do not disclose confidential information unless legally obligated to do so.
3. Integrity
a. Do not subvert/threaten organization’s legitimate objectives
b. Recognize and communicate personal and professional limitations that
would hamper successful performance of an activity
c. Avoid conflicts of interest and advise others of potential conflicts
d. Avoid activities that could affect your ability to perform duties
e. Refrain from activities that could discredit the profession
f. Communicate unfavorable as well as favorable information
g. Refuse gifts or favors that might influence behavior
4. Objectivity
a. Communicate information fairly and objectively
b. Disclose all information that might be useful to users especially the
management.