Introduction

This project will consider the principles and the role of Management Accounting, Management Accounting Systems, Techniques used by those Charged with Governance of the Management Accounting, and the Integration of the Management Accounting into the culture.

Firstly we will start with difference between the management accounting and the financial accounting. Financial Accounting tends to be the Accounting data used for creation of Financial Statements which are to be used for All Stakeholders, namely Shareholders and potential Stakeholders.

Management Accounting is the accounting data being used to assist the Management of the organization to focus on their Management of the organization and achieving the desiring goals for the organization.

Financial Accounting uses data to produce results the company has achieved, Management accounting uses data to assist the organization on how to achieve those results.

Management Accounting Harvard Case Solution & Analysis

An explanation of the principles of management accounting.

The most important branch of accounting is the managerial accounting. Managerial accounting provides to manager the information related to the obtained resources, their utilization in the business. The accounting information, reports and all the financial statements should be considered to meet the requirement of the specific problem or company.The accounting information modifies and adopts to meet the needs of management. There are four following principles of management accounting:

1. Communication will provide better insight that is more significant. The start and ending of any decision is based on the communication. For strategy and decision making process required communication.
2. The provided information must be appropriate and relevant. The most important role of accounting management is to provide the relevant information to the decision and strategy makers on a time. This can be achieved through building a perfect balance between:

• The present, future and past information of the company’s account.
• The external and internal information about the company.
• The non- financials and financials information.

3. By using the scenario analysis and models, makers analysed the valuable impact. To build the different scenario models the management accounting use the relevant information. This provides greater insight about the available options.
4. The last principle is stewardship builds trust. The objective of this principle to manage the resources and relationship in order to protect the assets, reputation of the company and its value(Accounting Web, 2017).

Figure # 1 Global management accounting principle

The role of management accounting and management accounting systems.

Role of management accounting:

The management of a company needs detail and comprehensive information for the formation of current budged financial statements. These financial statements provide to the external parties for different purpose.

• In order to make day to day decisions manger use the central theme of managerial accounting.
• The focus of the managerial accounting is on the future. In managerial accounting past performance is used as a benchmark.
• Through managerial accounting the manager can easily divided the total operation of the organization in to the various segments.
• The upper management needs relevant information and it is also a key factor. The reporting frequency is flexible with managerial account. Through the provided information the upper management can easily analysis the trade-off between the benefits and cost received from the action...................

This is just a sample partical work. Please place the order on the website to get your own originally done case solution.

Related Case Solutions & Analyses:

Cocoa Petes Chocolate Adventures (Abridged) Innocent Drinks History of Investment Banking To Agree or Not to Agree: Legal Issues in Online Contracting Sunrise Medical in 1999 Probability Assessment Appraisal R & R Case Portfolio Management Task FINANCE PROJECT Pay for performance MGOA Physicians (A) (B) (C)