Chapter 1
1. Differentiate management accounting from financial accounting and cost management
Management accounting: het faciliteren van processen bij het nemen van besluiten,
hierbij wordt van zowel financiele als andere informatie gebruik gemaakt om managers te
helpen bij het vervullen van hun taak.
Financial accounting: focus op external reporting wat wordt geleid door regels.
Cost accounting: meet en report financiële en non-financiële informatie die gerelateerd is
aan de acquisitie van het bedrijf en het gebruik van resources.
Cost accounting measures and reports financial and other information related to an
organisation’s acquisition or consumption of resources. It is an important component of
both management accounting and financial accounting.
2. Recognise the growing role of strategy in management accounting processes
The ultimate purpose of all management decisions is to increase value. The design of a
management accounting system should closely follow an organizations’ functions in the
value chain. Dus management accounting processen moeten ertoe leiden dat er een
degelijke strategie tot stand komt.
3. Identify five broad purposes of accounting systems
- Purpose 1: Formulating overall strategies and long-range plans. This includes new product
development and investment in both tangible (equipment) and intangible (brands,
patents or people) assets, and frequently involves special-purpose reports. Increasingly,
many organisations seek market-, supplier- and customer-based information for
determining longer-term strategic action.
- Purpose 2: Resource allocation decisions such as product and customer emphasis and
pricing. This frequently involves reports on th eprofitability of products or services, brand
categories, customers, distribution channels, and so on.
- Purpose 3: Cost planning and cost control of operations and activities. This involves
reports on revenues, costs, assets, and the liabilities of divisions, plants and otherareas of
responsibility.
- Purpose 4: Performance measurement and evaluation of people. This includes
comparisons of actual results with planned results. It can be based on financial or non-
financial measures.
- Purpose 5: Meeting external regulatory and legal reporting requirements where they
exist. Regulations and statutes often prescribe the accounting methods to be followed.
Financial reports are provided by some organisations to shareholders who are making
decisions to buy, hold or sell company shares. These reports ordinarily attempt to adhere
to authoritatively determined guidelines and procedures which exist in many European
countries.
4. Understand how accounting can influence planning, control and decision making
Planning: het kiezen van doelen, voorspellen van resultaten in bepaalde omstandigheden
en bepalen hoe dit doel bereikt zal worden.
Control: de actie die wordt ondernomen om de planning decision te implementeren en
het bepalen van de prestatie evaluatie en de feedback dat toekomstige decision making
zal bepalen.
Accounting influences planning, control and decision making through budgets and other
financial benchmarks, its systematic recording of actual results and its role in performance
evaluation.
1. Differentiate management accounting from financial accounting and cost management
Management accounting: het faciliteren van processen bij het nemen van besluiten,
hierbij wordt van zowel financiele als andere informatie gebruik gemaakt om managers te
helpen bij het vervullen van hun taak.
Financial accounting: focus op external reporting wat wordt geleid door regels.
Cost accounting: meet en report financiële en non-financiële informatie die gerelateerd is
aan de acquisitie van het bedrijf en het gebruik van resources.
Cost accounting measures and reports financial and other information related to an
organisation’s acquisition or consumption of resources. It is an important component of
both management accounting and financial accounting.
2. Recognise the growing role of strategy in management accounting processes
The ultimate purpose of all management decisions is to increase value. The design of a
management accounting system should closely follow an organizations’ functions in the
value chain. Dus management accounting processen moeten ertoe leiden dat er een
degelijke strategie tot stand komt.
3. Identify five broad purposes of accounting systems
- Purpose 1: Formulating overall strategies and long-range plans. This includes new product
development and investment in both tangible (equipment) and intangible (brands,
patents or people) assets, and frequently involves special-purpose reports. Increasingly,
many organisations seek market-, supplier- and customer-based information for
determining longer-term strategic action.
- Purpose 2: Resource allocation decisions such as product and customer emphasis and
pricing. This frequently involves reports on th eprofitability of products or services, brand
categories, customers, distribution channels, and so on.
- Purpose 3: Cost planning and cost control of operations and activities. This involves
reports on revenues, costs, assets, and the liabilities of divisions, plants and otherareas of
responsibility.
- Purpose 4: Performance measurement and evaluation of people. This includes
comparisons of actual results with planned results. It can be based on financial or non-
financial measures.
- Purpose 5: Meeting external regulatory and legal reporting requirements where they
exist. Regulations and statutes often prescribe the accounting methods to be followed.
Financial reports are provided by some organisations to shareholders who are making
decisions to buy, hold or sell company shares. These reports ordinarily attempt to adhere
to authoritatively determined guidelines and procedures which exist in many European
countries.
4. Understand how accounting can influence planning, control and decision making
Planning: het kiezen van doelen, voorspellen van resultaten in bepaalde omstandigheden
en bepalen hoe dit doel bereikt zal worden.
Control: de actie die wordt ondernomen om de planning decision te implementeren en
het bepalen van de prestatie evaluatie en de feedback dat toekomstige decision making
zal bepalen.
Accounting influences planning, control and decision making through budgets and other
financial benchmarks, its systematic recording of actual results and its role in performance
evaluation.
