P I C 1 : IN T R O D U C TI ON T O

TO
A G E M E N T A CC O U N T I N G
MAN ONG K1A2
ANICE W
MANAGEMENT ACCOUNTING

• THE PROCESS OF PROVIDING FINANCIAL INFORMATION TO INTERNAL USERS TO HELP THEM IN DECISION
MAKING.
 FINANCIAL ACCOUNTING VS MANAGEMENT ACCOUNTING

FINANCIAL ACCOUNTING MANAGEMENT ACCOUNTING

Internal and external user Internal user
Focus on the past Focus on the future
Purpose: Reporting profit/ loss and financial position Purpose: assisting decision making
Financial position Financial and non-financial information
Report a business as a whole Report a business according to sub-unit, product or
customer
Need to comply GAAP No rules or standard to comply
 Management
functions

Planning Controlling Decision Making

Involved in every
Based on
Selecting Ensure strategy Follow up if Making cost and Choosing the best activities
Setting Objectives To be achieved performance
strategies on the right track necessary revenues analysis alternatives including planning
evaluation
and controlling
 Accuracy

Flexibility Timeliness

Characteristics
of
Management
Accounting
Information

Cost effectiveness Understandability

Relevance
 Assist
management
in achieving
the
organisation’s
objectives.

Provide
Assist Role of information
management
in decision Management and
accounting
making. Accountant reports

Assist
management
in controlling
and
performance
evaluation.