3 Meaning and Functions of Management Accounting Detailed study report

Management Accounting

Management accounting is the process of assist in management for doing the managerial activities more efficiently and effectively. It is concerned with the accounting information which will be used for proper functioning of management.

The American Accounting Association defines "Management accounting is the application of appropriate techniques and concepts in processing historical and projected economic data of any entity to assist management in establishing plans for reasonable economic objectives in the making of rational decisions with a view towards these objectives".

The management accounting provides the managerial information to the managers of the concerned organization which helps them to work effectively according to the accounting information available in the right time. This information is the base for planning and decision making for the future course of business.


Scope of Management Accounting:

The purpose of management accounting is to provide adequate information to the business. For this, they are collecting qualitative and quantitative information from the accounting as well as non-accounting areas and submit to the managers. The following are the major scope of management accounting.

1. Financial Accounting - Management accounting is highly depends on the financial accounting because the arrangement of financial data is one of the main function of management accounting.
2. Cost Accounting - Cost accounting is a process which provides necessary information like standard costing, budgetary control, inventory control etc. these all data helps to co-ordinate the basic managerial functions like planning, decision making, controlling and other important activities for the future course of actions.
3. Operations Research - Now a days the business managers are handling complicated functions in the business activities. This is helps to identify some basic tools of Linear programming, queuing theory, decision theory etc and which will help the managers to do their activities properly in the current complicated business scenario.
4. Statistical Methods- The planning and forecasting of the business activities are very important aspect in the course of business activity. These planning and forecasting can be done with the use of statistical tools such as graph, charts, diagrams, index numbers, time series, regression analysis, sampling techniques etc.
5. Revaluation Accounting- This is mainly concentrate to ensuring the capital is maintained in real terms and the profit is calculated on that basis. The revaluation method is also known as the replacement value method.
6. Taxation- Taxation is an unavoidable aspect in the current business scenario. The taxation includes tax planning, computation of tax, filing of returns and making tax payments.
7. Office Services- The office services includes maintenance of proper data processing, communication to the concerned parties, use of technical services and the use of all other managerial services.
8. Law- All the management decisions are taken with the help of legal environment. The following are the acts which influence the management decisions such as The companies Act, MRTP Act, FEMA, SEBI Regulations etc.
9. Internal Audit- This is done for the development of the internal control of the business activities.
10. Internal Reporting- Reporting is the very important action in any course of business. This can be  categorized as the preparation of quarterly report, half yearly report, other interim reports, Scrap reports, Cash flow statements, Fund flow statements, income statements etc.

These all are the functions of management accounting for the smooth running of a business organization.

9 Scope of Business and management studies- Meaning, elements, steps, scope with picture gallery

Business

Business is a process of exchanging goods and services between the buyers and sellers. Business is an economic system in which goods and services are exchanged for money from one party to another. Business is an economic activity that deals the production and distribution of goods and services with the aim of earning profit.

Process of Business

The main characteristics of business is as follows:-

1) Business is a process of exchange of goods and services for the purpose of earning money.

2) Earning profit is the main aim of every business..

3) Business is a continuous transactions between the buyers and sellers.

4) It is a process which consists of risk and uncertainty due to the fire or theft.

5) Every business is a contract or agreement between two parties that is the buyer and the seller.

6) Business is the result of the production of goods and services.

7) Every business has its own social responsibility to their customers in the modern scenario.

8) Business involves two kinds of goods that is Consumer goods and producer goods.

Management

Management is the art of getting things done with the help of others. It includes Planning, Organizing, Directing, Staffing, Co-ordinating, Reporting and Budgeting. These are known as the PODSCORB of the management.

  The important Elements of Management are as follows:-

1. Planning- It is the process of getting things done through others.
2.  Organizing-  Organizing is a process of arranging all the process of activities for the effective management.
3. Directing- it is a continuous process which includes decision making and execution of the decisions with the help of others.
4. Staffing- Staffing is a very important activity which involves the protection and the work allotments to the staffs in an organization.
5. Co-ordination- This is an inter related activity which co-ordinates all the works in an organization.
6. Reporting- Reporting is an another important activity which connects the superiors with their subordinates every day. This is very essential to report the day to day activities to the superiors by directly, telephone call, message or e-mail etc.
7. Budgeting-  Budgeting is doing as planning and controlling of the future business. 

Elements of Management

 Business and Management

                   Business and management are the very important thing which an entrepreneur should have a well knowledge about this.  The study of business and management will enable us to identify the trends and techniques which can be use in the day to day business. As a part of the Business and Management study, we will get a clear idea about how things works in business and management and also enable to study about the Markets, finance, Information system, operations management, dealings with the external world etc.

 The proper study of the business and management gives a confidence to start the business in any competitive environment. Study of the business and management also enable to the following:-

• To start a business with clear idea of the internal as well as external environment of the business.
• It enable to apply business strategy and directions to the business.
• This gives the general rules and regulations to start a business
• It gives the clear idea of law for starting a business in other countries too.

Business and management

Business and management

Business and management

Business and management