ACCG100 Lecture Notes - Lecture 9: High Standard Manufacturing Company, Management Accounting, Finished Good
11 May 2018
School
Department
Course
Professor
Management Accounting
An important similarity between management accounting and financial accounting is that each field
of accounting deals with the economic events of an entity. Moreover, both types of accounting
euie that the esults of a etit’s eooi eets e uatified ad ouiated to
interested parties.
However, diverse needs for economic data among users have let to the differences between the two
fields. Additionally, entities are often unwilling to disclose publicly sensitive information which may
be useful to competitors. Therefore, management accounting / managerial accounting refers to the
processes and techniques that focus on the effective and efficient use of organisational resources to
support managers in their tasks of enhancing both customer value and shareholder value. It applies
to all types of business (service, merchandising, manufacturing etc.) and all forms of business.
Traditionally, management accountants provided information that enabled management to make
decisions. Today, because globalisation and changes in technology, management accountants act
more as the strategic financial management professionals who integrate accounting expertise with
advanced management skills to drive business performance inside entities. They serve as trusted
partners to executives in all areas, offing the expertise and analysis necessary for sound business
decisions, planning, and support.
Management accountants need to adhere to a high standard of ethical conduct. Australia does not
have a professional body specifically for management accountants, but many belong to the two
main accounting bodies: CA, and CPA. APESB also sets the code of ethics and professional standards
by which members must abide.
The management of an entity performs 3 broad functions:
1. Planning: Looking ahead and establishing short-term and long-term objectives. A key
objective is to add value to the business under its control, where value is measured by the
tadig pie of a opa’s shaes and the potential selling price of the company itself.
Other objectives could involve short term profit goals, market share, ethical commitments.
Planning also involves long term strategic objectives.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
An important similarity between management accounting and financial accounting is that each field of accounting deals with the economic events of an entity. Moreover, both types of accounting (cid:396)e(cid:395)ui(cid:396)e that the (cid:396)esults of a(cid:374) e(cid:374)tit(cid:455)"s e(cid:272)o(cid:374)o(cid:373)i(cid:272) e(cid:448)e(cid:374)ts (cid:271)e (cid:395)ua(cid:374)tified a(cid:374)d (cid:272)o(cid:373)(cid:373)u(cid:374)i(cid:272)ated to interested parties. However, diverse needs for economic data among users have let to the differences between the two fields. Additionally, entities are often unwilling to disclose publicly sensitive information which may be useful to competitors. Therefore, management accounting / managerial accounting refers to the processes and techniques that focus on the effective and efficient use of organisational resources to support managers in their tasks of enhancing both customer value and shareholder value. It applies to all types of business (service, merchandising, manufacturing etc. ) and all forms of business. Traditionally, management accountants provided information that enabled management to make decisions.
