Management accounting is largely used in the manufacturing industry and looks at the various cost items to manufacture a product. Budgets are set beforehand for the various cost items (direct materials, direct labour, factory overheads etc). These are then compared to the various actual costs incurred.
It provides management with a planning tool for the future, to allocate more precise budgets, but it also provides management with a monitoring and measuring tool to see which areas of production are running efficiently, where cost cutting can be done, where efficiency needs to be increased, what wastage is, what the cost of wastage is etc.
As you can see it is very important for manufacturing businesses to use this type of accounting, because when the costs of manufacturing can be held as low as possible, there will be either a larger profit margin for the company, or the company will be able to hold the sales price down, which may be attractive for consumers purchasing the product.
the function of cost accounting is to provide management of differents acitivities in a business
The management accounting function eliminates top management. With top management out of the decision process, the company may not be aware of many problems.
The content of issued SMAs ranges from fundamental issues, such as SMA No. 1A, "Definition of Management Accounting," to restructuring the finance function.
What are the function and responsiblity of Cost Accounting
to be General
the function of cost accounting is to provide management of differents acitivities in a business
The management accounting function eliminates top management. With top management out of the decision process, the company may not be aware of many problems.
Management accounting helps managers balance their budgets. Management accounting also helps managers know when their products are underperforming, so that they can make adjustments.
The content of issued SMAs ranges from fundamental issues, such as SMA No. 1A, "Definition of Management Accounting," to restructuring the finance function.
The functions of management accounting include: Budget control, ratio analysis, fund flow analysis and cash flow analysis. Management accountingâ??s main function is to collect accounting data which is useful for different managerial functions.
What are the function and responsiblity of Cost Accounting
to be General
The operating system has a number of function. Some of them are communicating with peripherals, interfacing, coordinating concurrent processing, resource management, accounting and security and memory management.
accounting functions
The role and the purpose of the accounting function can be identified 'to ensure the business's transactions are recorded and processed completely accurately and securely, and that relevant information is given to management'.
Role of accounts department in a corporation is: · Financial accounting: financial and fixed asset reporting; payroll; accounts payable · Accounting function: maintain the general and subsidiary ledgers; process and record all revenues and prepare general purpose financial statements in compliance with IFRSs · Accounting oversight and guidance to other internal departments to ensure the gaap, legal requirements, policies and procedures - all consistently applied to maintain the integrity of the financial records. · Management accounting - budgeting, performance evaluation, cost management, asset management
The primary objectives of the accounting function in an organization are to process financial information and to prepare financial statements at the end of the accounting period.