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    Managerial Accounting Basics - 20240109 - 100321 - 0000

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    Managerial Accounting Basics - 20240109 - 100321 - 0000

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    10 views20 pages

    Managerial Accounting Basics - 20240109 - 100321 - 0000

    Uploaded by

    shafinasiman

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 20

    HELLOOOO !!

    CHAPTER 1:
    MANAGERIAL
    ACCOUNTING BASICS
    Presented by Group 08b
    definition

    what is management
    accounting ?
    Process of identifying, recording
    and presenting financial
    information that is used internal
    by the management for planning,
    directing and controlling.
    1.1 comparison between managerial
    accounting and financial accounting
    financial accounting managerial accounting

    EXTERNAL USERS Type of INTERNAL USERS


    > creditor, goverment user > officers and managers
    internal reposts such as
    financial statement Types and budgets, CVP analysis.
    quarterly and annually frequency of as frequently as needed
    reports
    by the management.

    SPECIAL PURPOSE for


    GENERAL PURPOSE Purpose of
    SPECIFIC decision
    reporting profit or loss reports
    planning , controlling and
    directing
    pertains to business pertains to sub-units of
    as a whole. the business.
    highly aggregated very detailed.
    (condensed) content of extend beyond double
    limited to double reports entry accounting.
    entry accounting and not required to follow
    cost data. MFRS.
    required to follow
    MFRS.

    required to be verification
    neither published nor
    published and audited of reports audited by statutory
    by statutory auditors. auditors.
    1.3
    CHARACTERISTICS OF
    MANAGERIAL
    ACCOUNTING
    INFORMATION
    CHARACTERISTICS

    accuracy relevance
    must coincide with the
    01 needs of management 04 accounting information must
    be capable of making a
    functions difference in a decision

    timeliness cost effectiveness


    02 information obtained at 05 benefits of information
    the same time must outweigh the cost of
    information is required providing it

    03 understandability 06 flexibility
    using terms that are information is not necessarily
    easily understood accurate but it is easily adaptable
    to the needs decisions to be made
    ACCURACY TIMELINESS
    accounting information must be correct having information available to decisions
    for its intended purposes. incorrect makers before it loses its capacity to
    information could have serious and influence decisions
    damaging consequences
    exp: bussiness owners need accounting exp: information is timely when it is
    information that is applicable to the business available to users early enough to allow its
    decision at hand use in the decision process

    UNDERSTANDABLE
    •Using terms that are easily understood
    to ensure that the information obtained
    is clear and can be used to make
    informed decisions.
    exp : Presentation of information should not only
    facilitate understanding but also avoid wrong
    interpretation of financial statements
    RELEVANT COST EFFECTIVE
    Relevance is closely and directly related
    to the concept of useful information Producing good results without costing a
    To make a difference in the decision lot of money. Acquiring information costs
    process, information must possess money . the benefits obtained must be
    predictive value and/or feedback value greater than the costs
    exp: if net income confirm investor expectations exp: the company can get the
    about future cash generating ability, net income information from customer through
    has feedback value for investor surveys done by doing the online survey

    FLEXIBLE
    Information is not necessarily detailed for pointless accuracy, but it is easily
    adaptable to the needs of decisions to be made
    •Flexibility means that the system, which can deal with the changes in technology,
    competitive pressure, consumer, tastes, and regulations.
    exp: It describes an accounting system that is able to adapt to
    changes in the company, its operations, and needs of decision
    makers.
    CODE OF
    ETHICS
    IN MANAGEMENT ACCOUNTING
    IMPORTANCE OF ETHICS
    IN MANAGEMENT ACCOUNTING

    ETHICS -Ethics is an important part of


    managerial accounting, and
    companies follow a code of ethics or
    Ethics is more than simply conduct that addresses ethical
    obeying laws; it involves doing issues/concerns for management
    the right thing as well as the accountants.
    legal thing. -Managerial accountants should
    never commit acts that violate the
    Many companies have a code of standards of ethics
    conduct to help guide their -Ethical codes of professional
    employees. organizations provide helpful
    guidance.
    INSTITUTE OF MANAGEMENT
    ACCOUNTANTS (IMA)
    -The Institute of Management Accountants (IMA) is a professional
    organization responsible for creating managerial accounting guidelines.Its
    also provides accounting ethics for licensed accountants, and nonlicensed
    accountants that can be used in their accounting career .

    -Their ethical principles are based on honesty, fairness, objectivity and


    responsibility.

    -The members must use these ethical principles when engaging in


    accounting services for their company and the general public.
    ISSUES IN MANAGEMENT
    ACCOUNTING ETHICS §CIRCUMVENTING §CONSEQUENCES OF
    UNETHICAL BEHAVIOUR UNETHICAL ACTIONS
    i.Companies may choose to act i.Accountants who fail to abide by the
    unethically in the business environment. IMA's accounting ethical code face a
    Business owners may determine that variety of punishments.
    unethical behaviour is not necessarily
    illegal, a logic that creates a grey- ii. Accountants may lose their
    shaded area in business. professional certification, be removed
    from accounting positions and face legal
    ii.Managerial accountants constantly penalties depending on their
    may push ethical limits when recording inappropriate actions.
    and reporting financial information.
    THANK
    YOU
    By : 2A08b
    QUESTIONS
    QUESTION 1 :
    Give three functions of managements ?

    QUESTION 2 :
    Give us the difference between financial accounting
    and managerial in type of user aspects ?
    QUESTIONS
    QUESTION 3 :
    Give us four characteristics of managerial
    accounting information

    QUESTION 4 :
    Give us one role of management accountant
    QUESTIONS
    QUESTION 5 :
    Gives us one of issues in management accounting
    ethics .

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