Management accounting 21.09.20
Management Accounting
Managerial Accounting
o Managerial and financial accounting are part of the organisations accounting system
o Managerial: Focuses on information generated internally – useful for managers and
internal stakeholders
o Information for decision making derived from organisation’s core accounting system
- Process: identifying, measuring, analysing, interpreting and communicating
information
- Used for decision making
o Financial: published financial statements and financial reports for external users
Strategic cost management and the value chain:
- Secure raw materials
- Research and Development
- Product design
- Production
- Marketing
- Distribution
- Customer service
o Cost management system objectives: (improve performance of the company)
1) Measure the cost of resources consumed
- Important to have accurate system to measure these costs to generate profit
Management Accounting
Managerial Accounting
o Managerial and financial accounting are part of the organisations accounting system
o Managerial: Focuses on information generated internally – useful for managers and
internal stakeholders
o Information for decision making derived from organisation’s core accounting system
- Process: identifying, measuring, analysing, interpreting and communicating
information
- Used for decision making
o Financial: published financial statements and financial reports for external users
Strategic cost management and the value chain:
- Secure raw materials
- Research and Development
- Product design
- Production
- Marketing
- Distribution
- Customer service
o Cost management system objectives: (improve performance of the company)
1) Measure the cost of resources consumed
- Important to have accurate system to measure these costs to generate profit
