Essay on Accounting Analysis : Accounting And Management Accounting

734 Words Aug 27th, 2015 3 Pages
name of its journal from Cost Accounting to Management Accounting in 1965 and its own name to the Institute of Cost and Management Accounting in 1972. In 1986 it received its royal charter and became The Chartered Institute of Management Accountants (CIMA) (Allot, 2000). In the United States the National Association of Cost Accountants changed its name to the National Association of Accountants in 1958 (Scapens, 1991, p. 9). This organization became the Institute of Management Accountants (IMA) in 1991.
Overall it can be seen that after nineteenth century the focus changed from cost accounting to an emphasis on the provision of information that was appropriate to the needs of managers.
2.3 Definition of management accounting
Scapens (1991) stated that there is no generally agreed definition of management accounting. Various definition are available; but some are too general to provide a suitable structure, while others simply emphasis a particular research approach (Scapens, 1991).
American Accounting Association defines management accounting as ‘The application of appropriate techniques and concepts in processing historical and projected economic data of an entity to assist management in establishing plans for reasonable economic objectives and in the making of rational decisions with a view towards these objectives”. “Management accounting is the term used to describe accounting methods, systems and techniques which coupled with special knowledge and ability, assists…

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