Transcription of UNIT – I MANAGEMENT ACCOUNTING INTRODUCTION
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MBA-FinanceManagement AccountingUNIT IMANAGEMENT ACCOUNTINGINTRODUCTION:Abusiness enterprise must keep a systematic record of what happens fromday-tot-day events so that it can knowits position clearly. Most of the business enterprisesare run by the corporate sector. These business houses are required by lawtoprepare periodical statements in proper formshowing the state of financial systematic record of the daily events of a business leading to presentation of acompletefinancial pictureis knownas ACCOUNTING . Thus, Accountingis thelanguage of business. Abusiness enterprise speaks through ACCOUNTING . It revealstheposition, ACCOUNTING : ACCOUNTING is the process of recording, classifying, summarizing, analyzing andinterpreting the financial transactions of the business for the benefit of managementand those parties who are interested in business such as shareholders, creditors,bankers, customers, employees and government.
job, contract, service or any unit of production. It is done through various methods and techniques. 2. Cost Control: The very basic function of cost accounting is to control costs. Comparison of actual cost with standards reveals the discrepancies (Variances). The variances reveal AcroPDF - A Quality PDF Writer and PDF Converter to create PDF ...
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