Definition of Management Accounting

Management Accounting is also known as ‘Management Oriented Accounting’ or ‘Accounting for Management’ In common idiom ‘Management Accounting’ refers to the modern concept of accounts as an effective tool in the hands of the management as against the traditional package of accounts. Here are some definitions of Management Accounting.

1. According to Robert N. Anthony, ‘Management Accounting is concerned with accounting information that is useful to management.’

2. According to J. Batty, ‘Management Accounting is the term use to describe the accounting methods, systems and techniques which coupled with special knowledge and ability, assist management in its task of maximizing profits or minimizing losses.’

3. According to Institute of chartered accounts of England and Wales, ‘Any form of accounting which enables a business to be conducted more efficiently can be regarded as Management Accounting.’

4. According to The Institute of chartered accounts of India, ‘Such of its techniques and procedures by which accounting mainly seeks to aid the management collectively have come to be known as management Accounting.’

5. According to The American accounting Association, ‘Management Accounting includes the methods and concepts necessary for effective planning, for choosing among alternative business actions and for control through the evaluation and interpretation of performances.’ [Sharmin Jahan Sayma]

Reference: Kalam, M. A.; Ali, Mokub; Roy, Prabir, Liton, Nasrul Azam; Islam, H. M. Shafiqul; Molla, Hemayet Hossen; Waheduzzaman, Md.; Siddique, A. B.; (2018); Management Accounting; Commerce Publication; Dhaka; Page 1-2.

What is Management Accounting?

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