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Unit 9: Introduction to Management Accounting
Defi nitions Notes
The following are some definitions of management accounting:
“Management accounting is concerned with accounting information that is useful to
management.”
—R.N. Anthony
“Management accounting is the presentation of accounting information in such a way as to assist
management in the creation of policy and in the day-to-day operations of an undertaking.”
—Anglo American Council of Productivity
“The phase of accounting that is concerned with providing information to Managers for the use
of planning and controlling operations and for use in decision-making.”
—Ray K. Harrison
“Any form of accounting which enables a business to be conducted more effi ciently.”
—Institute of Chartered Accountants, England
“Management accounting is the identification, measurement, accumulation, analysis, preparation,
interpretation and communication of information that assists the executive in fulfi lling
organizational objectives.” —C.T. Horngren
“The application of accounting and statistical techniques to the specific purpose of producing and
interpreting information designed to assist management in its function of promoting maximum
efficiency and in envisaging, formulating and co-ordinating future plans and subsequently in
measuring their execution.”
—Association of Certifi ed Accountants
“Management accounting is concerned with accounting information which is useful to
management.” —Robert Anthony
“Management accounting is the presentation of accounting information in such a way to assist
management in creation of policy and in the day-to-day operation of the undertaking.”
—Anglo American Productivity Report
“More intimate merger of the two older professions of management and accounting means for
their satisfaction.” —Smith
“Information generated by accountants for managers.” —Anonymous
In sum, we can say by going through these definitions, that management accounting by the use
of various techniques provides information useful for planning and controlling the progress of
an organization towards its goals effi ciently.
!
Caution The accountants generate the information for the use of management.
Self Assessment
Fill in the blanks:
1. ....................... provides necessary information to assist the management in the creation of
policy and in the day-to-day operations.
2. The accountants generate the information for the use of ....................... .
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