Basic Framework of Management Accounting: Prof. Mark Jing D. Tayactac, CPA, MBA, MDM
Basic Framework of Management Accounting: Prof. Mark Jing D. Tayactac, CPA, MBA, MDM
FRAMEWORK OF
MANAGEMENT
ACCOUNTING
Prof. Mark Jing D. Tayactac, CPA, MBA,
MDM
MANAGEMENT FUNCTIONS AND
THE NEED FOR MANAGEMENT
ACCOUNTING INFORMATION
1. Planning
2. Directing and Motivating
3. Controlling
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ACTIVITIES INVOLVED IN MANAGEMENT ACCOUNTING
1. Determining, accumulating, and explaining costs –
both manufacturing and non-manufacturing costs
2. Computing or determining product cost / service cost
3. Determining cost behavior
4. Providing assistance to management in profit
planning / budgeting
5. Accumulating and presenting data which may be used
by managers in decision-making
6. Providing bases for cost control with the use of
standard costs and other planned objectives
7. Assisting managers in developing the company’s prices
both for external and internal transactions
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APPLICATION OF
MANAGEMENT
ACCOUNTING
1. BUSINESS
2. NON-PROFIT
ORGANIZATIONS
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PRINCIPLES GOVERNING THE DESIGN OF
MANAGEMENT ACCOUNTING SYSTEM
1. The system should help to establish the
decision-making authority over the
organization’s assets
2. The information generated by the
system should support planning and
decision making
3. The reports should provide a means for
performance monitoring and evaluation
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MANAGEMENT ACCOUNTING VS.
FINANCIAL ACCOUNTING
MANAGEMEN
FINANCIAL
T
ACCOUNTING
USERS OF
ACCOUNTING
Internal users: officers and
External users: stockholders,
creditors, concerned government
REPORT managers
agencies
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MANAGEMENT ACCOUNTING VS.
FINANCIAL ACCOUNTING
MANAGEMEN
FINANCIAL
T
ACCOUNTING
TYPES OF
ACCOUNTING
Budgets, financial projections, cost Financial statements and the
analyses, etc., depending on the accompanying notes to such
REPORTS specific needs of management statements
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MANAGEMENT ACCOUNTING VS.
FINANCIAL ACCOUNTING
MANAGEMEN
FINANCIAL
T
ACCOUNTING
ACCOUNTING Reports are prepared in accordance
STANDARD In preparing reports, the
with generally accepted accounting
S OF management of a company can set
principles and other
PRESENTATIO rules to produce information most
pronouncements of authoritative
N relevant to its specific needs
accounting bodies
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MANAGEMENT ACCOUNTING VS.
FINANCIAL ACCOUNTING
MANAGEMEN
FINANCIAL
T
ACCOUNTING
ACCOUNTING
Reports may cover any time period
PERIOD – year, quarter, month, week, day, Reports usually cover a year,
COVERED etc. Reports may be required as quarter, or month
frequently as needed
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Thanks!
Any questions?
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