5.1 Getting started
Management accounting aims to provide management with quantitative and financial information for better decision making and is, therefore, principally for internal consumption.
The emphasis of management accounts is to adopt a wide approach to planning and control, not only providing information on actual costs and revenues but also on expected costs and revenues. This enables projections to be made and future plans detailed in a numerate form. Management accounts aim to record, analyse, interpret and finally report to management on cost and revenue data.
Discuss the following points.
1. Accountancy has two distinct branches: Financial Accounting and Management Accounting. What is the difference between them?
2. How do management accounts aid the planning and control of present and future events?
3. Do you think these branches could exist without each other?
- 5.1 Getting started
- 5.2 Look through the following vocabulary notes which will help you understand the text and discuss the topic.
- 5.3 Reading Costs and Costing Methods
- 5.4 Comprehension
- 5.4.1 Answer the questions using the active vocabulary and Unit 5 Glossary.
- 5.4.2 Mark these statements t(true) or f(false) according to the information in the Text and Unit 5 Glossary. If they are false say why.
- 5.5 Language practice
- 5.5.1 Match the English terms in the left-hand column with the definition in the right-hand column.
- 5.5.2 Complete the following texts using the suitable words or phrases from the box.
- Budgetary Control
- 5.5.3 Complete the text. Replace the Russian words and phrases by the English equivalents. Planning
- 5.5.4 Text for discussion.
- Control
- 5.6 Render the passage in English using the English equivalents of the italicised phrases given in Russian. Express the main idea of the passage in one sentence.