09-03-2009, 05:14 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by tariq aziz</i>
<br /><blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by awaisaftab</i>
<br />In our country management accounting is considered as the part or cost accounting or we can say that the word management accounts is spoke as synonym to cost accounting. It is totally wrong Management Accounting is a totally different field. Although it has a deep relation with cost accounting but the cost data is used by the Management Accountants for the purpose of management accounting reports.
Official publications of CIMA-UK define Management Accounting in the following words
Management Accounting is "the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information used by management to plan, evaluate and control within an entity and to assure appropriate use of and accountability for its Resource (economics)resources. Management accounting also comprises the preparation of financial reports for non-management groups such as shareholders, creditors, regulatory agencies and tax authorities" (CIMA Official Terminology).
While CIMA defines Cost Accounting in the following words,
"The application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and ascertainment of profitability. It includes presentation of information derived therefrom for the purpose of managerial decisions.
Cost Accounting is mainly concerned with the costing and provision of more accurate cost data to the management. The main focus of cost accounting is costing, cost assignment, cost variance analysis, costing reports, budgeting, and designing of costing standards. It is mainly concerned with the planning and control of cost.
While management accounting is mainly concerned with the provision of help to the managers to asses them in the process of decision making and design business strategies.
Management accounting uses cost data for provision of information for strategic management decisions. For instance a firm wants to adopt cost leadership strategy then the historical cost data, desired cost of production and other relating data will be used by a Management Accounting to asses management and to provide help to draw a strategy to become Cost Leader of Market. On the basis of cost data capital budgeting, cost behaviour, profit analysis and investment decisions will be suggested by management accounting for the purpose to achieve strategic organizational goals.
It is very unfortunate situation that many qualified accountants use cost accouting and management accounting synonymously. In fact cost accounting and management accounting are two different fields of accountants.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
good mr.awais.. it really enhanced my knowledge....i am student of MBA.finance...we also study managerial accounting..
my question is that
Are we competitors to acma. icma degree holdes?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear Tariq
Thanks for appreciation. If the students of MBA get guidance from my topic it is a mater of pleasure for me.
You are competitors of ACMA's. But ACMA's are not competitor of MBA's . They are competitors of CA's and ACCA's. But competitor donât means enemy as the behavior of some professional accountant shows.
Regards
Awais
<br /><blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by awaisaftab</i>
<br />In our country management accounting is considered as the part or cost accounting or we can say that the word management accounts is spoke as synonym to cost accounting. It is totally wrong Management Accounting is a totally different field. Although it has a deep relation with cost accounting but the cost data is used by the Management Accountants for the purpose of management accounting reports.
Official publications of CIMA-UK define Management Accounting in the following words
Management Accounting is "the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information used by management to plan, evaluate and control within an entity and to assure appropriate use of and accountability for its Resource (economics)resources. Management accounting also comprises the preparation of financial reports for non-management groups such as shareholders, creditors, regulatory agencies and tax authorities" (CIMA Official Terminology).
While CIMA defines Cost Accounting in the following words,
"The application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and ascertainment of profitability. It includes presentation of information derived therefrom for the purpose of managerial decisions.
Cost Accounting is mainly concerned with the costing and provision of more accurate cost data to the management. The main focus of cost accounting is costing, cost assignment, cost variance analysis, costing reports, budgeting, and designing of costing standards. It is mainly concerned with the planning and control of cost.
While management accounting is mainly concerned with the provision of help to the managers to asses them in the process of decision making and design business strategies.
Management accounting uses cost data for provision of information for strategic management decisions. For instance a firm wants to adopt cost leadership strategy then the historical cost data, desired cost of production and other relating data will be used by a Management Accounting to asses management and to provide help to draw a strategy to become Cost Leader of Market. On the basis of cost data capital budgeting, cost behaviour, profit analysis and investment decisions will be suggested by management accounting for the purpose to achieve strategic organizational goals.
It is very unfortunate situation that many qualified accountants use cost accouting and management accounting synonymously. In fact cost accounting and management accounting are two different fields of accountants.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
good mr.awais.. it really enhanced my knowledge....i am student of MBA.finance...we also study managerial accounting..
my question is that
Are we competitors to acma. icma degree holdes?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear Tariq
Thanks for appreciation. If the students of MBA get guidance from my topic it is a mater of pleasure for me.
You are competitors of ACMA's. But ACMA's are not competitor of MBA's . They are competitors of CA's and ACCA's. But competitor donât means enemy as the behavior of some professional accountant shows.
Regards
Awais
