Management Accounting by Institute Of Cost of India Pdf
Download Management Accounting by Institute Of Cost of India Pdf book free online – from Management Accounting by Institute Of Cost of India Pdf book; This book explains the following topics: Evolution of Cost Accounting, Cost Concepts and Cost Classification, Prime Cost, Materials Cost Management, Labour Cost.
Management accounting is not a specific system of accounts, but could be any form of accounting which enables a business to be conducted more effectively and efficiently. Management accounting in the words of Robert S. Kaplan, is a system that collects, classifies, summaries, analyses and reports information that will assist managers in their decision making and control activities.
Unlike financial accounting, where the primary emphasis is on reporting outsiders, management accounting focuses on internal planning and control activities. Therefore management accounting requires the collection, analysis and interpretation not only financial or cost data, but also other data such as sales, price, product demands and measures of physical quantities and capacities. In the process, the system utilises all techniques of financial
and cost accounting including marginal or direct costing, standard costing, budgetary control, etc. Management accounting therefore appears as the extension of the horizon of cost accounting towards newer areas of management.
Management accounting is largely concerned with providing economic information to managers for achieving organisational goals. The information flow system is, therefore, extremely importantwhile designing the system. Managers at each level must have a clear understanding about the objectives and goals assigned and receiving flow of relevant information. It is important to note that overabundance of irrelevant information is as bad as lack of relevant information.