Management Accounting

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Management Accounting Techniques

Management Accounting


Managerial Accounting is also known as managerial accounting, a part of accounting along with financial accounting and tax, which directly serves the needs of internal management of the company , providing data which is needed for decision-making and development and hence for the current information to enable strategic decision-making, tactical, operational , planning and control through specialized techniques and procedures, such as budgeting , patterns, carefully selected models costing and revenue, cost behaviour analysis and reporting on its achievements.

In this paper we will critically evaluate the usefulness of management accounting in an era where service companies have superseded manufacturing companies as the dominant type of company in the United Kingdom.


Recent findings of the International Federation of Accounts (IFAC) assume that: management accounting is a system of collection, aggregation, classification, analysis and presentation of financial information and non supporting company management in making decisions and monitoring their implementation (Kader M., Luthe r R., 2008, pp. 2).


The primary objective of management accounting is the systematic provision of corporate management information to help you make the best decisions concerning the operation of the unit under certain conditions. It has a character that is an internal accounting is highly individualized and tailored to the needs of a particular company. The information provided by management accounting directly serve customers, which it used to:

Clarify questions such as: how to act,

The choice of these problems, which the company should focus its attention,

Solution to the problem, i.e. to choose the best possible ways to accomplish the task,

Controls both the conduct of individual processes and the implementation of plans and budget.

The value of information depends on what will affect the decisions taken and the results obtained in the company of their implementation (

The main objective of management accounting is to support decision making within the enterprise. Overall that management accounting has important functions in the decision making process.


Functions of management accounting:

The planning function is to provide information to reduce the degree of risk when making choice, management accounting provides the data needed for decision-making in the management of the unit, helping to build cost models form the basis for performance assessment.

Control function, the difference between planned and actual values ??achieved, identifies deviations in terms of their origin, causes and people responsible.

Function of organizational, managerial accounting is reflected in the structure that defines the subordination, responsibility and specialization, which describes the border between the centres of responsibility; indicate the roles and responsibilities of managers' decision-making centres.

Communication function ensures adequate communication system through the appropriate forms and methods of information (reports, reports, referrals, instructions).


The task of management accounting is directing the attention to the measurement of costs and their allocation. Along with this the following are also the tasks of management accounting (Uyar A., 2010, pp. 113).

Directing attention to the business areas that require management intervention

Assisted decision-making at all levels of government

supplying information on the effects of decisions and actions taken by management

The Techniques of Management Accounting

In management accounting the objective have certain specific ...
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