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    MAS Chap 4

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    Kimberly Binoya
    The document discusses the roles and responsibilities of management accounting. It describes management accounting as providing both quantitative and non-quantitative information to assist management in planning, decision-making, and controlling operations. The key roles of the controller are to accumulate and report accounting information to all levels of management, and to direct management's attention to problems and assist in solving them. The controller exercises staff authority over the accounting department.

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    MAS Chap 4

    Uploaded by

    Kimberly Binoya
    42 views4 pages
    The document discusses the roles and responsibilities of management accounting. It describes management accounting as providing both quantitative and non-quantitative information to assist management in planning, decision-making, and controlling operations. The key roles of the controller are to accumulate and report accounting information to all levels of management, and to direct management's attention to problems and assist in solving them. The controller exercises staff authority over the accounting department.

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    The document discusses the roles and responsibilities of management accounting. It describes management accounting as providing both quantitative and non-quantitative information to assist management in planning, decision-making, and controlling operations. The key roles of the controller are to accumulate and report accounting information to all levels of management, and to direct management's attention to problems and assist in solving them. The controller exercises staff authority over the accounting department.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    42 views4 pages

    MAS Chap 4

    Uploaded by

    Kimberly Binoya
    The document discusses the roles and responsibilities of management accounting. It describes management accounting as providing both quantitative and non-quantitative information to assist management in planning, decision-making, and controlling operations. The key roles of the controller are to accumulate and report accounting information to all levels of management, and to direct management's attention to problems and assist in solving them. The controller exercises staff authority over the accounting department.

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    You are on page 1of 4

    CHAPTER 4

    A distinguishing characteristic of Management Advisory Services (MAS) is that “the services rendered are for
    management, rather than for third parties”.

    The two basic management functions which affect the activities of accountants:

    1. Planning – which involves setting of both immediate and long range goals for the organization.
    2. Controlling – in this, the management sees to it that operations are carried out in the best possible way.

    Management need for accounting information

    - Information needed by management for it decision making function may be either quantitative or
    nonquantitative. As to quantitative information, the accountant gathers relevant information, analyzes it,
    breaks it down, sorts it out, and organizes it, to come up with a report that may help management and other
    parties make sound decisions.

    As to orientation of the reports, accounting can be divided into

    1. Financial accounting – reports that are primarily prepared for external users, such as investors, creditors
    and government regulatory and taxing agencies.
    2. Managerial(Management) accounting.- reports designed to meet the needs of external users, particularly
    the managers.

    Cost Accounting Data Base – is part of both Financial and Managerial accounting and serves as the foundation
    from which many external and internal accounting reports emerge. It is the process of determining the cost of some
    particular product or activity.

    Points to remember in Management Accounting:

    1. Use of nonaccounting information – nonaccounting or nonquantitative information should not be totally


    ignored.
    2. Need for judgment – Managerial accounting info merely assists managers in rendering judgment, but it is
    not a substitute for judgment.

    Financial Accounting and Managerial Accounting

    Differences: (to be followed tonight)

    Similarities:

    1. The same considerations that make generally accepted accounting principles sensible for the purposes of
    financial accounting are applied for purposes of management accounting.
    2. Both divisions draw information from the same operating accounting system.

    Controller: Chief Management Accountant – is mainly responsible for the accounting aspects of management
    planning and control. He generally performs two basic interrelated roles :

    1. Accumulation and reporting of accounting information to all levels of management, and


    2. Directing management’s attention to problems and assisting them in solving such problems.

    Controllership – the function of business which combines the responsibility for accounting, reporting,
    measurement, auditing, taxes, operating controls and other related areas.
    Functions

    1. Planning for control


    2. Reporting and interpreting
    3. Evaluating and consulting
    4. Tax administration
    5. Government reporting
    6. Protection of assets
    7. Economic appraisal

    His role in management control

    He is responsible for 1) designing and operating a system, through which control information is collected
    and reported, 2) analyzing figures, for pointing out their significance, and 3) making recommendations to
    management.

    He exercises staff authority

    Controller exercises control or line authority over his own department only (controller’s or accounting
    department).

    His place in the organization

    His stature and duties vary depending on the size of the company.

    Distinctions between Controller & Treasurer

    Controllership Treasurership
    1. Planning and control 1. Provision of capital
    2. Reporting and interpreting 2. Investor relations
    3. Evaluating and consulting 3. Short-term financing
    4. Tax administration 4. Banking and custody
    5. Government reporting 5. Credit & collections
    6. Protection of assets 6. Investments
    7. Economic appraisal 7. Insurance

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