ADVANCED MANAGEMENT

ACCOUNTING
Unit 1: INTRODUCTION
Introduction: Limitation of Financial Accounting,
Employment of Management Accounting,
Definition and scope Role of Market Accountant
Controller functions Managerial services
Management Information System.
 WHAT IS FINANCIAL
ACCOUNTING?
•Recording,
•Summarizing and
•Reporting
•a company's business transactions
through financial statements.
 LIMITATION OF
ACCOUNTING
•Derived from Historical Costs.
•Are Not Adjusted for Inflation.
•Only Cover a Specific Period of Time.
•May Not Be Comparable.
•Could be Wrong Due to Fraud.
 What do Management
Accountants do?
•Based of the survey of CMAs, top 5 work activity in terms
of time devoted to the activity

• Accounting system and financial reporting 62%

• Managing the accounting function 42%
• Internal consulting 42%
• Short-term budgeting 37%
• Long-term strategic planning 25%
 ABILITIES & SKILLS TO
BECOME A CMA
1. Communication skills
2. Ability to work on a team
3. Analytical/problem solving skill
4. Solid understanding of accounting
5. Understanding of how a business functions
6. Computer skills
DESIGNING & INSTALLATION OF
MANAGEMENT ACCOUNTING
 Designing The Management
Accounting System
1. Accounting Database
2. Level of detail
3. Cost Accounting System
4. Management Control System
 Installation of Management
Accounting System
1. Basic Consideration
2. Preliminary Step
3. Formal Steps
ROLE OF MANAGEMENT
ACCOUNTING
•Planning
•Controlling
•Problem Solving
•Score Keeping
•Attention Directing
Management Accounting as a
Career
https://www.edupristine.com/blog/cma-all-details-guide
Management Information
System
Canith defines MIS as: An approach that
visualize the business organization as a single
entity composed of various interrelated and
interdependent subsystems looking together to
provide timely and accurate information for
management decision making, which leads to
the optimization of overall enterprise goals.