Professional Documents
Culture Documents
Fundamentals of
Managerial Accounting
Chartered Accountant
Cost Accountant
Ph.D., IIT B, Powai, Mumbai
Contact Information:
varadraj@som.iitb.ac.in
I am very good in my
own area of specialization
How would you react to the
above statement?
Management
As & Finance
you Expertise
mo
ve
up .
. Functional
Expertise
Itassists in management
Will help in planning,
organisation and control of
business
Leads to increase in efficiency of
business
Profit maximization
Recording of Financial
Transactions
Reporting of Financial Results
Preparation of Financial
Statements
Targeted to External Users
Managerial
Managerial Accounting
Accounting Financial
Financial Accounting
Accounting
Information
Information for
for decision
decision Published
Published financial
financial
making,
making, and
and control
control statements
statements andand other
other
of
of an
an organizations
organizations financial
financial reports.
reports.
operations.
operations.
Internal External
Users Users
Managerial Accounting - Dr. Varadraj Bapat
Complexity of Organisation
Ownership is widespread
This increases the importance of
Finance function
PROVIDERS RESOURCES
OF FOR
MONEY BUSINESS
These two
are always
equal
Managerial Accounting - Dr. Varadraj Bapat
The Basic Business Model
Infrastructure
The
Money
Money Collection
Cycle Procurement
Billing
Value
Consumption
Addition Delivery
Cycle
People
People
Liabilities Assets
Infrastructure Revenue
Capital Costs
Reserves Fixed Assets Money
Borrowings Collection
(eg.from Banks) Current Assets
or Working Procurement
Outstanding
Current Capital & Inventory
Liabilities
Consumption Profit
Delivery &
& WIP
Human Assets Billing
People
Profits build up reserves & enable an
enterprise to acquire new assets without
borrowing money. Exactly the way we can
acquire assets for our use without borrowing.
Managerial Accounting - Dr. Varadraj Bapat
Balance Sheet Profit & Loss Account
Liabilities Assets
Infrastructure Revenue
Capital Costs
Fixed Assets
Reserves Money
Borrowings Collection
Current Assets
(eg.from Banks)
or Working Procurement
Capital Outstanding
Current & Inventory
Liabilities
Consumption Profit
Delivery &
Human Assets & WIP
Billing
People
Chairmans Statement
Board of Directors & Committees
Directors Report
Directors Responsibility Statement
Auditors Report
Report on Corporate Governance