Management Accounting

Posted by Unknown On Thursday, June 13, 2013 0 comments


1. What is the definition of management accounting?
Ans:
Management Accounting:
Management accounting is concerned with accounting information that is useful to management.
According to Charles T. Horngren, "Managenet Accounting is the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information that assists executives in fulfilling organizational objectives.”

2. What is Managerial Accounting?
Ans:
Managerial Accounting:
Managerial accounting is the process of
1. Identifying.
2. Measuring.
3. Analyzing.
4. Interpreting.
5. Communicating Information.

3. Make a flow chart about Managing Resources. Activities and people?

4. What are the functions of Management Accounting?
Ans:
Functions of management accounting:
1. Collection of data.
2. Modification of data.
3. Analysis of financial information.
4. Evaluation of function.
5. To help planning.
6. Coordination.
7. Problem identification.
8. Budgeting.
9. Controlling.
10. Communication.
11. To help policy determination.


5. What are the techniques of management Accounting?
Ans:
Techniques of management accounting:
1. Determine production cost.
2. Analyses financial statement.
3. Determine standard cost.
4. Budgetary control.
5. Determine direct cost.
6. Operation research technique.

6. How managerial accounting adds value to the organization?
Ans:
1. Providing information for decision making and planning.
2. Assisting managers in directing and controlling activities.
3. Motivating managers and other employees towards organizations goal.
4. Measuring performance of subunits, activities, managers and other employees.
5. Assessing the organization's competitive position.

7. What is the Scope of Management Accounting?
Ans:
Scope of management accounting:
1. Financial accounting.
2. Cost accounting.
3. Budgeting.
4. Decision accounting.
5. Tax accounting and tax planning.
6. Analysis and interpretation of accounting information.
7. Reporting.
8. Office management.
9. Management information system.
10. Control system.

8. Differentiate Managerial versus financial accounting?

9. What are the Major themes in Managerial Accounting?
Ans:
Major themes in managerial accounting:
Managerial accounting:
1. Behavioral issues.
2. Information and incentives.
3. Costs and benefits.
4. Evolution and adoption.

10. Managerial accounting as a career:
Professional organizations:
Institute of management accountants (IMA)
1. Publishes management accounting and research studies.
2. Administers certified management accountant program.
3. Develops standards of ethical conduct for management accounts.

11. What are the Professional Ethics?
Ans:
Professional ethics:
1. Competence
2. Confidentiality.
3. Integrity.
4. Credibility.

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