Definition Of Management Accounting
Management Accounting may be defined as “the presentation of accounting information in such a way as to assist the management in the creation of the policy and day-to-day operation of an undertaking” – Management Accounting of the Anglo-American to productivity.
The Institute of Chartered Accountants of England has defined it –
“Any form of accounting which enables a business to be conducted more efficiently can be regarded as Management Accounting”.
Robert N. Anthony has defined Management Accounting as follows-
“Management Accounting is concerned with accounting information that is useful to management.”
According to American Accounting Association, “Management Accounting includes the methods and concepts necessary for effective planning for, choosing among alternative business actions and for control through the evaluation and interpretation of performance”. This definition is fairly illustrative.
According to Kohler, Forward Accounting includes “Standard costs, budgeted costs and revenues, estimates of cash requirements, break even charts and projected financial statements and the various studies required for their estimation, also the internal controls regulating and safeguarding future operating.”
Blending together into a coherent whole financial accounting, cost accounting and all aspects of financial management”. He has used this term to include “the accounting methods, systems and techniques which, coupled with special knowledge and ability, assist manageme4nt in its task of maximizing profits or minimizing losses.” – James Batty.
Thus all accounting which directly or indirectly providing effective tools to managers in enterprises and government organizations lead to increase in productivity is “Management Accounting.”
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