HEMVATI NANDAN BAHUGUNA GARHWAL UNIVERSITY

DEPARTMENT OF BUSINESS MANAGEMENT

SESSION 2022-24
3rd SEMESTER

Subject: Management Accounting

The Role of Management Accounting in the Basic Management Process

PRESENTED TO: PRESENTED

BY: Dr. Monika Kashyap Abhishek
Panwar
 What is Management Accounting
Management accounting, also known as managerial accounting, is a
branch of accounting that focuses on providing information and analysis
to support management in making informed business decisions and
evaluating the performance of an organization.
 Functions of Management Accounting

Decision-Making Support:
Cost Analysis: Management accounting helps in analyzing and understanding the costs
associated with various products, services, and activities.

Make or Buy Decisions: Management accountants assess the costs and benefits of
producing goods or services in-house versus outsourcing, assisting in strategic decision-
making.

Planning and Budgeting:

Budget Development: Management accounting is instrumental in the creation of
budgets, which outline the financial expectations and resource allocation.
Performance Measurement:
Key Performance Indicators (KPIs): Management accountants develop and monitor
KPIs to measure the performance of various aspects of the organization.

Variance Analysis: By comparing actual results with budgeted or expected results,

management accounting identifies and analyzes variances, helping to pinpoint areas that
require attention and improvement.

Cost Accounting:
Product and Service Costing: Management accountants determine the costs associated
with producing goods or delivering services, providing insights into pricing strategies
and profitability.
 Role of Management Accounting
Providing Relevant
Financial Information for
Planning
Management accounting helps
in developing accurate
financial plans, assessing
future needs, and ensuring
effective resource allocation.
Helping in Decision-Making
through Accurate Cost
Analysis
By providing detailed cost
analysis, management
accounting supports decision-
making processes, such as
pricing strategies and
investment decisions.
Monitoring and Controlling Evaluating the Effectiveness
Financial Performance of Management Strategies

Management accounting Through financial analysis,

enables ongoing monitoring of management accounting
financial performance, assesses the impact of
identifying deviations, and implemented strategies and
implementing necessary recommends improvements for
corrective actions. achieving organizational goals.
THANK YOU