Application of Management Accounting
DAC503:MANAGEMENT ACCOUNTING
ASSIGNMENT
11/08/2011
Application of Management Accounting in your organization
D61/62965/2010 MAY_AUGUST SEMESTER UON_NAIROBI CAMPUS
How management accounting is applied at ICEA ASSET MANAGENT LTD
Management accounting or managerial accounting[1] is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions.
In contrast to financial accountancy information, management accounting information is: * forward-looking, instead of historical; * model based with a degree of abstraction to support decision making generically, instead of case based; * designed and intended for use by managers within the organization, instead of being intended for use by shareholders, creditors, and public regulators; * usually confidential and used by management, instead of publicly reported; * computed by reference to the needs of managers, often using management information systems, instead of by reference to general financial accounting standards.
According to the Chartered Institute of Management Accountants (CIMA), Management Accounting is "the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information used by management to plan, evaluate and control within an entity and to assure appropriate use of and accountability for its resources. Management accounting also comprises the preparation of financial reports for non-management groups such as shareholders, creditors, regulatory agencies and tax
ASSIGNMENT
11/08/2011
Application of Management Accounting in your organization
D61/62965/2010 MAY_AUGUST SEMESTER UON_NAIROBI CAMPUS
How management accounting is applied at ICEA ASSET MANAGENT LTD
Management accounting or managerial accounting[1] is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions.
In contrast to financial accountancy information, management accounting information is: * forward-looking, instead of historical; * model based with a degree of abstraction to support decision making generically, instead of case based; * designed and intended for use by managers within the organization, instead of being intended for use by shareholders, creditors, and public regulators; * usually confidential and used by management, instead of publicly reported; * computed by reference to the needs of managers, often using management information systems, instead of by reference to general financial accounting standards.
According to the Chartered Institute of Management Accountants (CIMA), Management Accounting is "the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information used by management to plan, evaluate and control within an entity and to assure appropriate use of and accountability for its resources. Management accounting also comprises the preparation of financial reports for non-management groups such as shareholders, creditors, regulatory agencies and tax
References: 1. http://en.wikipedia.org/wiki/Management_accounting 2. ^ * "Taking Control of IT Costs". Nokes, Sebastian. London (Financial Times / Prentice Hall): March 20, 2000. ISBN 978-0-273-64943-4 3. http://en.wikipedia.org/wiki/Budget#Corporate_budget