Management Accounting

Management Accounting

Management Accounting provides information for the following jobs of an organisation:

• Formulation of Policies
• Planning the Activities – From Strategic to Operational
• Controlling the Activities
• Performance Appraisal
• Decision Making – Choosing between Alternatives

Developments in Management Accounting

• Development of more descriptive models
• Implications of Just in Time and Material Resource Planning
• Usage of Operation Research and Computer models for short run decisions
• Extension of Management Accounting system to
• Strategic Management, Profit Impact of Marketing Strategy, Activity based Management, Backflush Accounting, Throughput Accounting, Target Costing, Life cycle costing, Cost reduction and investment appraisal – Sensitivity analysis.

Investment in Information Technology

• Cost reduction, man hour savings and inventory reduction
• Improved control over various area of business
• Better Customer Service
• Increase in Capacity
• Strategic Positioning, improved competitive positions and enhanced market share
• Better training of personnel, improved morale, motivation, skills acquisition, team working and development of key personnel.