Management Accounting
1) Managerial accounting has its focus on analyzing and providing cost information within the company internally so that its management can plan, operate and control the company more effectively. In contrast, financial accounting has its focus on the financial statements which are distributed to external stockholders, lenders, financial analysts, and others outside of the company, as mentioned by (K.A. Francis, n.d.)
Knowledge in management accounting will allow Anne Radhika to have knowledge of basic cost accounting skill, various finance tools and also some tax principles. As Information in management accounting is presented internally, it would allow Anne, as an operations manager, to make decisions concerning the daily operations of a business, by keeping track of her production division’s income and expenses. Furthermore, she will learn to analyze the basic data and make forecasts, budgets, etc.
MA has several advantages that coincide with the ability for companies to improve operations and overall profitability. According to (Osmond Vitez, n.d.), it can firstly help to reduce cost: Information from Management Accounting assist to review the cost of economic resources and other business operations, allowing Anne to better understand how much money it costs to run her solar power production division. In addition, an analysis can be conducted on how economic resources are utilized to produce the solar panels. If overall production quality would not be hampered by using a more affordable raw material, Anne would be able to propose this to the higher management, helping her company and division to reduce production costs.
Secondly, it can help to improve cash flow by allow Anne to comb and sift through the nooks and crannies of her division, creating a budget that contributes to the master budget. With the main objective of saving money through careful analysis of necessary and unnecessary cash expenditures.
Thirdly, management accounting is able to improve
Knowledge in management accounting will allow Anne Radhika to have knowledge of basic cost accounting skill, various finance tools and also some tax principles. As Information in management accounting is presented internally, it would allow Anne, as an operations manager, to make decisions concerning the daily operations of a business, by keeping track of her production division’s income and expenses. Furthermore, she will learn to analyze the basic data and make forecasts, budgets, etc.
MA has several advantages that coincide with the ability for companies to improve operations and overall profitability. According to (Osmond Vitez, n.d.), it can firstly help to reduce cost: Information from Management Accounting assist to review the cost of economic resources and other business operations, allowing Anne to better understand how much money it costs to run her solar power production division. In addition, an analysis can be conducted on how economic resources are utilized to produce the solar panels. If overall production quality would not be hampered by using a more affordable raw material, Anne would be able to propose this to the higher management, helping her company and division to reduce production costs.
Secondly, it can help to improve cash flow by allow Anne to comb and sift through the nooks and crannies of her division, creating a budget that contributes to the master budget. With the main objective of saving money through careful analysis of necessary and unnecessary cash expenditures.
Thirdly, management accounting is able to improve
Bibliography: Chartered Institute of Management Accountants, 2010. CIMA Code of Ethics for Professional Accountants. [Online] Available at: http://www.cimaglobal.com/Documents/Professional%20ethics%20docs/code%20FINAL.pdf Chartered Institute of Management Accountants, 2013. Embedding Ethical Values. [Online] Available at: http://www.cimaglobal.com/Documents/Ethics/Embedding_ethical_values-CIMA_partners.pdf Gary Spraakman,York University, December 31. 2010. The Impact of Information Technology on Management Accounting Practices, s.l.: s.n. Perera, S. P. d. P. a. A., 2013. World Resources Institute. [Online] Available at: http://www.wri.org/blog/2013/03/accounting-environmental-externalities-good-business-and-planet Rogers, C. G., 2005. Financial Reporting of Environmental Liabilities and Risks after Sarbanes-Oxley, Hoboken, New Jersey: John Wiley & Sons. Samantha Putt del Pino, A. P., 2013. World Resources Institur=te. [Online] Available at: http://www.wri.org/blog/2013/03/accounting-environmental-externalities-good-business-and-planet