MAS-01: OVERVIEW

MANAGEMENT ACCOUNTING
― involves the application of appropriate techniques and concepts to economic data so as to
assist management in establishing plans for reasonable economic objectives and in the
making of rational decisions with a view toward achieving these objectives.

MANAGEMENT ACCOUNTANTS
― are concerned with providing information to managers, that is, people inside an organization
who direct and control the operations.

SCOPE OF MANAGEMENT ACCOUNTING

1. Scorekeeping or data accumulation – enables both internal and external parties to evaluate
organizational performance and position (Ex: Reporting sales by branch for the sales
manager, preparing a monthly statement for the IBM marketing vice president).
2. Attention-directing activities or interpreting and reporting information – helps manager to
focus on operating problems, opportunities as well as inefficiencies (Ex: .
3. Problem-solving activities – are the quantification of the relative merits of possible courses
of action as well as recommendations as to the best procedure.