The role of management accounting is also described as problem solving, score keeping and attention directing.

Problem solving: The role of accounting in problem solving is to provide information useful in evaluating alternatives.


Scorekeeping: Scorekeeping records the results of various actions of the managers and helps in assessing whether the results expected from the various actions are realized or not.

Attention directing: The scorekeeping function in combination with expected results, and comparative analysis of scores of various companies, divisions and departments, comparative analysis of present period scores or results with previous periods show opportunities of focusing attention of managers to improve things.

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Management accounting is the internal business building role of accounting and finance professionals who work inside organizations. These professionals are involved in designing and evaluating business processes, budgeting and forecasting, implementing and monitoring internal controls, and analyzing, synthesizing, and aggregating information—to help drive economic value.

The role of management accounting differs from that of public accounting, since management accountants work at the “beginning” of the value chain, supporting decision making, planning and control, while audit and tax functions involve checking the work after the fact. Management accountants are valued business partners, directly supporting an organization's strategic goals. With a renewed emphasis on good internal controls and sound financial reporting, the role of the management accountant is more important than ever.

It obviously takes more people to “do” the work than it does to “check” the work. In fact, of the five million finance function professionals in the U.S., more than 90% work inside organizations as management accountants and finance professionals. Some common job titles for management accountants in organizations of all sizes and structure include:

* Staff Accountant
* Cost Accountant
* Senior Accountant
* Corporate or Division Planner
* Financial Analyst
* Budget Analyst
* Internal Auditor
* Finance Manager
* Controller
* Vice President, Finance
* Treasurer
* Chief Financial Officer (CFO)
* Chief Executive Officer (CEO)

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Management accounting or managerial accounting 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:

* designed and intended for use by managers within the organization, whereas financial accounting information is designed for use by shareholders and creditors.
* usually confidential and used by management, instead of publicly reported;
* forward-looking, instead of historical;
* computed by reference to the needs of managers, often using management information systems, instead of by reference to financial accounting standards.

Hi

Management accounting or managerial accounting 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.

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Also known as corporate accountants, management accountants work within one specific company. They perform a series of tasks to ensure their company's financial security, handling essentially all financial matters and thus helping to drive the business's overall management and strategy.

A management accountant's responsibilities can range widely. Depending on the company, your level of experience, the time of year and the type of industry, you could find yourself doing anything from budgeting, handling taxes and managing assets to helping determine compensation and benefits packages and aiding in strategic planning.

Management accountants are essentially key figures in determining the status and success of a company. Some management accountants choose to become a Certified Management Accountant (CMA), a similar credential to CPA, but with a greater focus on cost accounting, financial planning, and management issues. To start working towards a management accounting career, find accounting bachelors MBA, or MAcc degree programs.

Consistent with other roles in today's corporation, management accountants have a dual reporting relationship. As a strategic partner and provider of decision based financial and operational information, management accountants are responsible for managing the business team and at the same time having to report relationships and responsibilities to the corporation's finance organization.

The activities management accountants provide inclusive of forecasting and planning, performing variance analysis, reviewing and monitoring costs inherent in the business are ones that have dual accountability to both finance and the business team. Examples of tasks where accountability may be more meaningful to the business management team vs. the corporate finance department are the development of new product costing, operations research, business driver metrics, sales management score carding, and client profitability analysis. Conversely, the preparation of certain financial reports, reconciliations of the financial data to source systems, risk and regulatory reporting will be more useful to the corporate finance team as they are charged with aggregating certain financial information from all segments of the corporation. One widely held view of the progression of the accounting and finance career path is that financial accounting is a stepping stone to management accounting. Consistent with the notion of value creation, management accountants help drive the success of the business while strict financial accounting is more of a compliance and historical endeavor.

In corporations that derive much of their profits from the information economy, such as banks, publishing houses, telecommunications companies and defence contractors, IT costs are a significant source of uncontrollable spending, which in size is often the greatest corporate cost after total compensation costs and property related costs. A function of management accounting in such organizations is to work closely with the IT department to provide IT Cost Transparency.

Hi

Management accounting or managerial accounting 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:

* designed and intended for use by managers within the organization, whereas financial accounting information is designed for use by shareholders and creditors.
* usually confidential and used by management, instead of publicly reported;
* forward-looking, instead of historical;
* computed by reference to the needs of managers, often using management information systems, instead of by reference to financial accounting standards.

Thanks

Hi

Also known as corporate accountants, management accountants work within one specific company. They perform a series of tasks to ensure their company's financial security, handling essentially all financial matters and thus helping to drive the business's overall management and strategy.

A management accountant's responsibilities can range widely. Depending on the company, your level of experience, the time of year and the type of industry, you could find yourself doing anything from budgeting, handling taxes and managing assets to helping determine compensation and benefits packages and aiding in strategic planning.

Management accountants are essentially key figures in determining the status and success of a company. Some management accountants choose to become a Certified Management Accountant (CMA), a similar credential to CPA, but with a greater focus on cost accounting, financial planning, and management issues. To start working towards a management accounting career, find accounting bachelors MBA, or MAcc degree programs.

Thanks

Hi

* designed and intended for use by managers within the organization, whereas financial accounting information is designed for use by shareholders and creditors.
* usually confidential and used by management, instead of publicly reported;
* forward-looking, instead of historical;
* computed by reference to the needs of managers, often using management information systems, instead of by reference to financial accounting standards.

Thanks

Hi
* Breaking down of cost/expenditure into functions and processes to facilitate cost control at each operational level.
* Developing standards for all operating areas and evaluating actuals with the standards.
* Analysing overall business and operational data.
* Suggesting alternatives to improve productivity.
* Identifying areas of wastages, leakages and inefficiencies or invisible losses.
* Ensuring optimum utilisation of available resources.
* Deploying informatic tools for an efficient management information system.
* Contributing to Total Quality Management (TQM).
* Assisting in decision-making process at all cadres of management.

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