Introduction of Managerial Accounting
Introduction of Managerial Accounting
Introduction of Managerial Accounting
Managerial Accounting
Managerial Accounting
Management accounting or managerial
accounting is the process of identifying,
analyzing, recording and presenting financial
information that is used for internally by the
management for planning, decision making
and control.
"Managerial accounting involves the application of
appropriate techniques and concepts in processing
information to assist management in establishing
plans and making rational decisions towards the
achievement of the organization's objectives.“
-American Accounting Association
Planning and Budgeting:
Managers use managerial accounting
techniques to plan what to sell, how much to
sell, what price is to be charged to reimburse
the costs of production and also earn an
optimal profit. The capital budgeting and
master budget are the two important topics in
this area.
Capital budgeting
Master budget
Decision Making:
When managers have to decide whether or
not to start a particular project, they need
managerial accounting information to
estimate the benefits of various opportunities
and decide which one to choose. Mangers
often use relevant costing techniques.
Measurement of Performance:
https://www.principlesofaccounting.com/chapter-17/planning/
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