Essays on Managerial Accounting

Two distinct set of financial reports are used in managing a company, one made by Financial Accountants and the other by Managerial Accountants. These reports are aimed at the company’s external stakeholders such as investors and creditors and are prepared for each quarter and at the end of the financial year and. The format and content of these reports are laid down in laws such as the SOX (Sarbanes- Oxley) Act and in accounting regulations such as the GAAP (Generally Accepted Accounting Principles) and the IFRS (International Financial Reporting Standards). Financial reports become comparable across companies. Managerial accounting ...

Both managerial and financial accountings have entirely different users. For instance, financial accounting helps organizations to present their financial status to various stakeholders like board of directors, investors and financial institutions. Financial accounting also presents the monetary details of an organization for a specific period in the past and helps the audience to understand how the company has performed during the above period. On the other hand, managerial accounting helps managers to take day to day business decisions. In other words, managerial accounting has nothing to do with the past performance of a business organization, but with the current ...

Compare and Contrast Financial and Managerial Accounting

Compare and Contrast Financial and Managerial Accounting

Introduction

In the current world, the environment in which companies operate has become more competitive, and this trend worsens by the day. As such, it has become imperative that firms focus more on advanced and sophisticated means of gathering accounting information for them to react as required towards market dynamics. In this consideration, it is important for these companies to employ proper accounting practices, which might either be financial, managerial or cost accounting (Hoffjan, Nevries, and Stienemann, n.d.). This paper will, however, focus on the first two. It will explore their similarities, differences ...

MANAGEMENT ACCOUNTING

Introduction Management and financial accounting provide platforms for an organization management to provide informed decision and policies. Organization management uses the budget as the accounting tool in formulation of policies and allocation of resources in different activities. Accounting encompasses the entire body of knowledge that deals with recording and keeping of all financial transactions. It entails identification, recording, classification, verification, and communication of financial information relating to the resources of the organization. On the other hand, financial accounting is a subset of accounting and is concerned with the use of financial data to measure economic performance of the organization. ...

MANAGEMENT ACCOUNTING

Introduction Management and financial accounting provide platforms for an organization management to provide informed decision and policies. Organization management uses the budget as the accounting tool in formulation and allocation of resources in different organization activities. The managers are the custodian of the budgets under the management and financial accounting. Financial statement and records provide viable financial data that helps in organization management especially in decision-making. Therefore, the study focuses on the management and financial accounting and expounding on objectives of the budget in an organization. The study will also provide the need of using variance analysis in organization ...

The airline industry is considered to be highly competitive and therefore airline company managers will need to determine the relevance of their current ERP systems with regards to the applicability of the financial information it generates. This is because the same quantitative and qualitative information is used for both financial and management accounting. However, the main goal of a company is to generate better profitability for its owners while remaining sustainable. This is done by controlling costs while improving revenues through the use of budgets and the standardization of costs and results to variances, which are primarily under management ...

Edmonds, Tsay, and Olds (2011, p.314) considers the cash budget to be one of the most important operating budgets developed by the company. The reason for this is that it reveals the amount of cash excess and deficit incurred by the company, which is usually on a monthly basis (Horngren, Harrison, & Oliver, 2012, p.1065). The additional purpose of the cash budget is that it reveals the amount of cash that can be used by the company for short-term investments or for the repayment of previous borrowings in the event of a cash excess (Edmonds, Tsay, & Olds, 2011, p.315). The ...

Introduction

Managers are constantly making decisions that affect the operations and the bottom lines of the business. Such decisions could include the stocks in which to invest, when to introduce a new product into the market, how to optimize the profits of a firm, how to assign employees to various tasks, and when to venture into new markets. Managers require information to make correct and timely decisions. Managerial accounting and financial accounting are potent sources of the information that managers require when making decisions. Managerial accounting entails the identification, measurement, and communication of the economic information that is needed by ...

Introduction

Definition of Managerial Accounting Businesses must implement effective decisions at varying phases of growth through management accounting for a chance of a future. According to an article on the Harvard business Review, businesses mainly go through two main phases of growth: the start-up phase or the mature phase. According to Churchill and Lewis, each of these phases demand and rely on differing strategies that fulfill a need and/or takes the business to the next phase. The techniques used or applied to haul business through these phases are referred to as managerial accounting techniques. The parties responsible for reinforcing managerial ...

Introduction 3

Comparative Financial Performance Analysis of Pepsi and Coca Cola for the Last Two Years (2014 and 2015) through Ratios and their Interpretations 3 Analysis of Profitability Ratios 4 Gross Profit MarginW 4 Net Profit margin 5 Return on Assets 6 Analysis of Solvency Ratios 7 Current Ratio 8 Quick Ratio 9 Analysis of Capital Structure Ratios 10 Debt-to-Equity Ratio 11 Interest Coverage Ratio 12 Examination of Efficiency Ratios 14 Days Sales are Outstanding 14 Days in Inventory 15 Payables Period 16 Findings and Recommendations 17

References 20

Comparative Financial Performance Analysis of Pepsi and Coca Cola Introduction Because of their global ...

Wal-mart stores are the leading retail company in the worldwide. It operates retail stores in various formats such as discount stores supercenters and neighborhood markets (Susan, 2012). Revenues from the United States are leading instrumental in Wal-Mart. For instance, the company recorded revenue of $446.95 billion in the fiscal year ended December 2012, an increase of 5.8% over 2011 (Susan, 2012). Meanwhile, the company’s strong market position in the United States provides economies of scale that promotes the brand image to the company. I choose to use Wal-mart stores to demonstrate the purpose of the managerial accounting because my ...

Differences between managerial accounting and financial management

These terminologies are accounting terms that are commonly used by the management as they assess the financial performance of the company. Financial management is the management of funds of the organization in an efficient and effective way so as it may be generative and yield earnings. Managerial accounting is an accounting branch that mostly deals with confidential documents and reports that are usually for the top management use.

Financial management deals with the presentation of the financial performance and position of the company to the public/ external users who are able to gain information about the company through the ...

Managerial and financial accounting.

Management and financial accounting are both crucial tools for business growth but serve different purposes. The accounts produced by management and financial accountants have different audiences, represent different business durations, and have different uses in application. Financial accounting represents the financial status or health of an organization to create an appealing image to the external holders. Contrary management accounting is done to make decisions concerning daily business operations (Stolowy and Lebas, 2007).

Managerial accounting provides physical, economic and financial data used internally by business executives, operators and managers. Contrary, financial accounts provide financial data only used by outsiders such ...

This paper will focus on Hotel Complimentary Products Limited whose complimentary offerings include hygiene bags and dispensers. The Hygiene bag dispensers cost £6.00 in London and are available in White and Chrome. The complementary refill packs cost £4.5 and contain up to 25 bags. In addition, loose hygiene bags are made available for customers who do not require the dispensers. Further, a discreet and convenient sanitary disposal technique is facilitated by a standard box quantity of 24 boxes x 25 bags. Their hygiene bag dispenser systems are designed to essentially provide clean, safe and convenient techniques of disposing of ...

Introduction

This paper discusses inventory management techniques used by firms. It also discusses techniques used by American Airlines to minimize costs and maximize profits.

Inventory management

Inventory management entails the processes and functions responsible for the maintenance, record keeping, reception and delivery of inventory and related products in any given business concern. The inventory management is one of the functions that any business organization should strategically address if is to achieve its profit maximization and costs minimization objectives. Inventory should be managed well so as to incur related management costs in the least way possible. Businesses employ different techniques and approaches in ...

Summary and evaluation of articles

The Sarbanes Oxley Act was intended to create sanity in management of corporations in the U.S. Ten years down the line, the Act has been appreciated for its successful approach in creating a state of accountability in the management of companies. Today, the citizenry and investor organizations trust corporate governance reports and statements. According to authors of the Sarbanes Oxley Act implications, changes have been witnessed in the management and the degree of independence of both auditors and the board of directors. These changes are expected to occasion a consequential improvement in the way corporations are led. In addition, the financial ...

Managerial Accounting

A cash budget records the cash inflows and outflows expected to occur in the respective functional year. It suffices for the purposes of estimating, planning and laying control for the use of the cash flows of the company for the functional year. The cash budget preparation and development employs the technique that approaches budgeting through the functional units. The budgeting process, as such, involves the estimation of the expected cash inflows and cash outflows for the respective functions in the company. The budgeting process integrates the concepts of accruals and prepayments. The expected accruals and prepayments that would fall ...

Managerial accounting as the name suggests provides information to the internal users of accounts. Internal users include executives, product managers, and sales managers to name a few. Any other user within the organization may also benefit from managerial accounting methods and use the compiled information to make informed decisions that would affect the financial performance of the company. As the information gathered is for internal users there is no compulsion that the data should abide by US GAAP rules (Heisenger & Hoyle, 2013). For example, a sports good manufacturer may add the non-production costs to the inventory as the internal users are ...

a. Purpose of Managerial Accounting Managerial accounting is the process of preparing accounts and management reports that provide timely and accurate statistical and financial information. Managers require such information in making short and long term decisions (Wild, Shaw and Chiappetta, 2013). Unlike financial accounting that produces annual reports used by external stakeholders, management accounting generates reports means for an internal audience and use. The objective of management accounting is to improve on the effectiveness of both control functions and management planning. Management accounting serves four functions; cost control, cost evaluation, management planning and performance evaluation. It provides ...

Introduction

Recently, the role of a managerial accountant is widely discussed in the scholars. Johnson and Kaplan (1991) argue that management accounting is “too late, too aggregated, and too distorted to be relevant for managers’ planning and control decisions” (1). Haedr (2012) considered the mediation effect of management accounting information on motivation using contingency theory stating that “MAI usefulness accounts for a full (i.e. complete) mediation effect only on the relationship between centralization and MCS effectiveness.” (n.p.). As the number of views cannot present a unified opinion on the matter, the purpose of the current paper to reveal whether the functions of the ...

The restaurant plans to introduce a new menu. Using menu-engineering principles, we are going to analyze the popularity and margins on each dish and beverage and come up with the new menu. The menu engineering principles are psychology, managerial accounting, marketing strategy, and graphic design. Psychology is the perception that people have towards the dish. It can also be described as the effect that the dish has on people(Walker, 2007). Managerial accounting is concerned with the pricing of the menu item. It looks at the cost of production of each menu item and the contribution margin from each item. ...

Computation of Variable and Fixed Cost Elements

For performing the managerial accounting analysis to compute the variable and fixed cost elements by using a high-low method, the following table is considered which reveals that the actual quantity of units produced and the total cost incurred to produce them: Variable Cost per Unit = Change in the total cost of the two production activities

Change in the total production activity

Variable Cost per Unit = Total Cost Higher Activity - Total Cost Lower Activity

Units Produced Higher Activity - Units Produced Lower Activity

= ($14,940 - $11,200) / (10,000 - 7,100) = $3,740 / 2,900 Variable Cost per Unit = $1.289 per unit

Total Fixed Cost is calculated as follows:

Total Cost Higher Activity – (Variable cost per ...

Job order costing and process order costing are two different managerial accounting procedures that are used by various companies around the world. Many companies prefer using job order costing, while other companies choose to use process costing. According to Heisinger and Hoyle (2014), job order costing is used by companies which produce a unique product, whereas process order costing is used by companies that produce goods and service in bulk. These good and services pass through a series of processes before the final product is obtained. It is not that one type of method is more prevalent than other, but ...

Bibliography

Print Challa, S. and Potumarthi, R. (2013) ‘Chemometrics-Based Process Analytical Technology (PAT) Tools: Applications and Adaptation in Pharmaceutical and Biopharmaceutical Industries’. Appllied Biochemistry Biotechnolology, Volume 169, pp. 66-76. Rathore, A., Bhambure, R. and Ghare, V. (2010) Process analystical technology (PAT) for biopharmaceutical products. Anal Bionalatical Chemistry, 398, pp. 137-134. Gendrin, C., Roggo, Y. and Collet, C. (2008) Pharmaceutical applications of vibrational chemical imaging and chemometrics. Journal of Pharmaceutical and Biomedical Analsysis, Volume 48, pp. 533-553. Glassey, J. et al. (2011) Process analytical technology (PAT) for biopharmaceuticals, Biotechnology Journal 6, (4), pp. 369-377. Kegam, S. ...

Company Overview

Sony Corporation is among the largest manufacturers of consumer electronics products in the world. The company engages in the design, development, manufacture, and sale of various types of electronic instruments, equipment, and devices for consumer, industrial, and professional markets. Primarily, the company operates in Asia, Middle East, Africa, Europe, and America. The company also distributes gaming software and hardware ('Sony Corporation SWOT Analysis' 2013, p. 3). The company does the distribution, manufacture, and broadcasting of image-based software such as motion picture, television products, and recorded music. The company’s manufacturing facilities are mainly located in Asia, but the company ...

Standard costing and variance analysis

The standard cost is the predetermined cost that is carefully and definition. The estimated cost of the production of a single unit or the cost of different service performance is done (Rajasekaran & Lalitha, 2011). This is the narrow definition of the standard cost. The broad meaning of the standard cost is the estimated production cost that is involved in the projects, operation production and the administrative purposes. The standard costing uses the techniques that standardize the cost and the revenues. This is in the purpose of controlling the cost factors and the determinant through the variance analysis. It is ...

Introduction

The main perspective of this assignment is to make a comparison between two different accounting standards which particularly are International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP). It is required to analyze both the accounting framework from four different angles that will be executed after analytical framework.

Analytical Framework

IFRS is the most widely chosen accounting standards that are taken into practice by many of the companies. The term IFRS is generally referred as “International Financial Reporting Standards” that is formulated to bring all business issues based on a platform of global identical language that helps to understand the company’ ...

Introduction

The main purpose of this report is to analyze that how learning curve is a function that measures how labor cost declines as units of production increases. Labor and production are two important concepts come under the ambit of economics and finance, and it’s usually associated with the productivity of the individuals as well as the firms. Learning Curve is a curve that associated with two different variables in particular in which an increment in a single variable would lead to decrease the power of the other one and vice versa. The utilization of Learning Curve has been receiving increasing and ...

Introduction

During the past three decades, companies operating in various sectors of the economy have experienced various changes in the scope of their operations. The service and manufacturing sectors have encountered dramatic changes in their business environment. Competition from companies operating in the same industry whether in the same jurisdiction or in global markets has resulted in situations where companies embark on revolutionizing their management to enable companies to remain relevant and competitive in today’s extremely competitive global environment. Consequently, a considerable reduction in product life cycle due to advancing technological trends has posed a considerable test to meet customer’s ...

Introduction

The introduction of stakeholder theory as a basis for the development of Corporate Governance in the 21st century has been most effectively seen in the commitment to the sustainable economic development of employees, their families and the local community that they serve. The improvement of “society at large” it is presumed, is the basis to good business and ultimately profits (McNett, 2012). Unlike theories of agency, which propose individual decision as a model for corporate leadership, the foreign market entry of global organizations involved in trade has set the pace for increased focus on collective decision by stakeholders in response to ...

According to Patterson, “servant leaders are those leaders who lead an organization by focusing on their followers, such that the followers are the primary concern and the organizational concerns are peripheral” (Shekari and Nikooparvar, 2012). They are those leaders who place their subordinate’s needs before their own and focus on helping their employees to grow and achieve optimization in their careers and skills (Waterman, 2011). Managerial accounting is a combination of accounting, finance and management while making use of leading techniques so that the businesses can be a success. It actually involves the identification of, measurement of, analysis, interpretation and ...

Discuss the characteristics of “relevant information” in the context of managerial accounting and strategic decision making. What are opportunity costs? What is the relevance of sunk costs when analyzing new opportunities? One of the major roles of the managers is to make decisions where they must choose the most suitable course of action; this role can only be fulfilled successfully when the manager is able to acquire the relevant information. There are basically two broad characteristics of information which makes it relevant including it being future oriented and the presence of alternatives. Any historical information can not differ ...

Describe and provide specific examples of fixed, variable, and mixed costs. Why is an understanding of cost behavior critical to financial planning and profitability? Can the nature of a specific cost change over time (i.e. from fixed to variable, variable to mixed, etc.?) If so, how? Costs are of three types: variable, fixed and mixed. Variable costs refer to those costs which vary as the level of production varies and it is in a linear fashion. A perfect example for the variable cost is the material or resources; when the cost per product is $5, as the number of products ...

Lesson 4: Cost and Behavior

Lesson 5: Pricing and Service Decisions Lesson 6: Planning and budgeting Abstract This document contains responses to questions for three lessons from the unit HA-343 Healthcare Financial Management. They are Lesson 4: Cost and Behavior; Lesson 5: Pricing and Service Decisions and Lesson 6: Planning and budgeting. Lesson 4: Cost and Behavior

Question 1: Explanation of financial accounting, managerial accounting,

and managerial finance - Financial accounting relates to preparation of financial statements to be used by decision makers. They include suppliers, stockholders, banks, government agencies, government agencies, owners of industries. There will always be a need for financial accounting because it limits the ...

A manager happens to have a lot of responsibilities in a company or an organization. He appears in control of certain company operations. Managerial accounting at times can also be referred to as ‘cost accounting’. When a manager appears equipped with managerial accounting information, he appears in a better position to make decisions inside the organization. During the managerial accounting quarter, we did some group assignments and group presentations. These group works assisted me in learning the value of teamwork. Moreover, it also helped me realize that a company or an organization can achieve greater results and good performance if all the involved ...

Managerial and financial accountants perform the accounting functions in the organization. Accounting entails the allocation, management, reporting and disbursement of funds and finances within the organization. In modern management the role of accounting cannot be ignored. Accountants play a fundamental role that in the end determines the efficiency and successful operations of the organization. The paper shall examine the roles and functions of managerial and financial accountants. Managerial accountants are in-charge of budgeting, forecasting, allocation and regulation of finances within the organization. In that context, managerial accountants see to it that organizational finances are well distributed and allocated in ...

Pros and cons of the partnership as a form of ownership

A partnership is a form of business that is formed when two or more people slots in a business activity and share profit, loss and investment. Similar to any other from of business ownership, partnership has its advantages and disadvantages as discussed below. On of the main advantages of the partnership is the fact that it is easy to form since one requires is just an agreement. The partnership allows the divisibility of responsibilities where the owners share the business duties (Lipczynski, 2008). The partners also provide moral support to each other in order to counter challenges and stresses in ...

Abstract

Partnership is a means of forming businesses where two or more people join their resources in order to pursue a common goal.Partnerships have many pros and cons in the way they are formed and how they operate.When starting a small business there are several ways to consider as sources of funding.These include personal savings,borrowing from friends and family,bank loans and angles.Marketing of company’s products is important in order to create awareness to target customers and to pursued them to purchase.The components to consider when marketing are product,price,place and promotion.When marketing, technology and social responsibility are used to ...

- Advantages and disadvantages of partnerships: A partnership is a form of business ownership that results from the association of two or more people in co-owning a business.

Advantages of partnerships:

- Partnerships have little start up restrictions and other than the setup of the partnership agreement, everything else is simple. - Partnerships enable the pooling of resources i.e. capital, skills and borrowing power thus people can invest more as a group than as individuals. - Partnerships offer better chances at specialization than sole proprietorships since partners can assign roles depending on skillsets and get the benefits of specialization. - Partnerships ...

Abstract

The relationship between Total Quality Management (TQM) and managerial accounting lies in that fact that managerial accounting concerns itself with decision making in an organization. Apparently, management accounting is one of the mechanisms that an organization relies on for the generation of information used in decision making. Total Quality Management (TQM), a management philosophy that has its roots in the Japanese traditional management systems has become increasingly popular. This paper, which assumes the structure of a literature review plus some additional research, seeks to explain the relationship between the two key concepts, which are Total Quality Management (TQM) and Managerial accounting. ...

a) Discussing the roles of planning and control in the budgetary system. Comprehensive budgets will have two basic functions, which are planning and control. It is for this reason that the organization needs to decide the function, which is most significant, and later resolve a range of formulation issues. The budgetary systems will be used in evaluating managers' performances and at the same time, tie their bonuses to the attained targeted goals. However, while the company is extensively concerned with operational efficiency, it should focus on the control and coordination of various aspects of budgeting. The extent to which a budget ...

Differences between managerial accounting and financial accounting

Financial accounting is mandatory since some external parties like tax authorities’ creditors and shareholders’ require such periodic statements, while managerial accounting, is not mandatory. Managerial accounting reports are prepared for use by managers while financial accounting reports are made for external parties. The former must be prepared according to the GAAP standards, while in managerial accounting some provisions are ignored. Though the two procedures use the same data, the relevance is different; financial accounting data are verifiable and objective and used when to solve situations at hand (Tulsian, 2002). On the other hand, managerial accounting data is flexible and ...

Want Beverages strengths

Want Beverages is a beverage company based in Burlington, Ontario owned by Bill and Angela Moffat. Even though the company owners could clearly picture where they want their company to be in the next few years, they are not sure of the means of making it get there. Strengths are those attributes that will enable the firm to increase its sales to a level that will ensure success in achieving its long-term goals. The firm operates in a dynamic industry, which requires it to position itself to achieve a competitive edge over other competitors (Fredrick and Gary, 2011).

The Moffats have represented various ...

Challenges of NPV and IRR

There are several challenges in using the NPV and IRR methods in capital budgeting such that experts have now recommended the use of MIRR. The IRR method assumes that the company will get positive cash flows during the life of the project. This at times may not be true especially for projects which have negative cash flows. The alternating cash flows will generate multiple answers. Secondly, the method assumes that any re-investment of cash that occurs will be at the IRR which is not realistic. The method does not tally with the results of NPV results when it comes ...

Partnership is defined as the relationship of two or more people who come together jointly to carry out a business. This form of indulgence has its advantages and disadvantages;

Advantages of partnership

First of all, it makes it possible to raise enough funds tin initiate a business since there is more that one person to combine forces. In addition to that this form of business attracts many employees especially due to the fact that they are offered the incentive of becoming a partner to the business. Subsequently, there is a wide scope of knowledge within this combination since members of the partnership may have different skill ...

Activity- Based Costing

There are several advantages in implementing activity-based costing over the traditional accounting methods. With activity-based costing, overheads are not arbitrary assigned to the goods or services. There is an aim to trace those costs to the different products. This results in correct costing analysis. Traditional methods lead to over-costing and under-costing and the management is unable to make a strategic decision wisely on which product to increase or cease production (Asada, Bailes & Suzuki, 2000). The management is able to get clarity on which products increase the profit and which are a drain on the company resources. With accurate overhead ...

The Sarbanes - Oxley Act of 2002 was passed after the corporate scandals of certain companies such as Enron and WorldCom. The responsibility of the senior management was increased to a higher level. First of all the management are supposed to establish and oversee the implementation of the internal controls of the firm (Strawser, 3). They must accept this responsibility. The acceptance of this responsibility must be disclosed in the financial statements. The management is also expected to disclose whether the internal controls have been effective in the financial reporting process. The Act expects the management to disclose the framework ...

Business is one of the most revenue earning activity to both the nation and individuals. Arguably, there are various major forms of business ownership in the world today. In most case, choice of business ownership depends on group or individual objectives, capital, number of members, as well as the outcomes of the business ownership. This business ownership includes partnership, sole proprietorship, corporations, as well as limited liability companies. Each of this business ownership has various advantages and disadvantages.

Certainly, compared to other business ownership, partnership can be bad or good. One of the pros of partnership is that it ...

This paper seeks to discuss various aspects of a business. The paper first discusses various pros and cons of a partnership form of business. It then goes on to list various methods that can be employed for financing a business. This is followed by discussing various components of the process of marketing and the role of social responsibility and technology in marketing.

PROS AND CONS OF A PARTNERSHIP

Depending upon the involved circumstances and various other business considerations, business partnerships can prove either good or bad. Following are some pros and cons of business partnerships (Rhonda, 2003): Pros

Shared Cost- One of the biggest advantages of a ...

Abstract

Competition has increased over the years due to globalization and improved access to information. Consequently, firms are constantly attempting to reduce cost, improve efficiency and increase demand to remain competitive. In this regard, many firms in this era have fully dedicated management and cost accountants who constantly look for ways to reduce running and production cost. One of the inventions meant to cut costs is the philosophy of lean accounting, which includes just in time (JIT) production and total quality management (TQM). The aim of this paper is to suggest to Uptown clinic chief administrator on how she ...

Introduction

There are certain differences between internal and external financial accounting. Internal financial accounting is also known as managerial accounting. The main differences between the two activities are the users of the financial statements, the types of information, the frequency of preparing the statements and the regulatory oversight of the accounts. The external financial information is a summary of the historical data of the company and it is mandatory for the accountants to prepare these statements. On the other hand internal financial accounting is detailed in nature and tends to be futuristic in terms of projections, budgets and estimations. It is ...

Introduction

Managerial accounting commonly referred to as management accounting deals with analyzing and making use all the essential accounting information by the management in making informed business decisions. The accounting data used provides the premise on which the decisions of the management will be based. A more thorough definition has been provided by the Chartered Institute of Management Accountants (CIMA). In its definition, CIMA states that management accounting is the discipline that employs identification, determination, analysis, preparation and use of accounting data in planning and executing strategies that will ensure proper use of company resources to attain the goals of ...

Introduction

Management accounting can assist managers in an organization make timely and purposeful management decisions about the organization. Different organizations have different managerial accounting needs depending on their most essential area of business. Generally, management accounting deals with providing accounts and management reports to managers within the organization (Khan & Jain 2007). The information provided is crucial in assisting managers make informed decisions for control and management purposes. In contrast to financial accounting, which provides annual reports to external parties such as investors, creditors, shareholders and others, management accounting provides periodical reports (Coombs, Hobbs, and Jenkins 2005). These reports are important ...

Task 1

This section presents a brief report of the research conducted on local accountancy firms. It clarifies the accounting services offered to the clients. It begins by giving an in depth understanding of the various services offered and the utility added to the client. Services generally range from independent auditing, tax advisory and financial planning advisory.

A research on services offered by local accountancy firms indicates that most of local firms offer both managerial accounting services and financial accounting services. Under managerial accounting services, the firms aid clients with the understanding of how management decisions should be made for business performance. ...

Managerial Accounting helps in the provision of important information that supports the internal management processes of an organization. In so doing, Managerial Accounting greatly helps the organization’s management to achieve the set goals. This is realized through planning and control, and appropriate decision making. Both standard costing and budgeting techniques help in planning and control, while direct costing and capital budgeting, among other techniques, help in decision making. In general terms, Managerial Accounting is all about the methods and ideas that provide accounting information aimed at supporting directly the managerial roles in an organization. On the other ...