Management Accounting Procedure Essay

Question:

Discuss about the Management Accounting.

Answer:

Introduction

Management accounting is the procedure of identification of communicating, analyzing, interpreting and measuring statement for following of the goal of a company. Managerial accounting commonly famous as “cost accounting”, that is a most important part in accounting system. Difference between financial and managerial accounting is reflects that the managerial accounting statement or the information is objected to assists the organizer of the company inside the company to make some decisions about the organization. The main object of the financial accounting is to provides information to their other partners outside the company (AHMED and DUELLMAN, 2012).

Main body

Management accounting can be defined as the providing and preparing punctual statistical and financial information to the business organizers, to make everyday their short time managerial decisions. It is the procedure of producing information for the organization’s internal stakeholders and they also opposed by the external stakeholders. Proper impact of the managerial accounting is periodic statement for the company’s manager of the Chief executive officer of company’s department. Management accounting reports are commonly inclusive of the detailed accounts of the company’s availability of the organizations revenue on their hand, recent production of sales revenue, present situation of the companies accounts payable and receivable (Bamber, Braun and Harrison, 2008).

Managerial accounting statement is greatly varying from the financial accounting, quite a less numbers of different paths. Financial accounting reports have a tendency of being based on historical data. But management accounting is mainly focused on the looking forward of the accounts of the company. Managerial accounting information also generally kept secret and mainly used for inner purpose of the company. This type of accounting system is also different from other accounting practices. Managerial accounting system is not tabulated depend on commonly accepted accounting practices system. Instead, mainly they depend on requirements of the managements information (Cruz Rambaud, 2010).

Verizon group is a private company founded in the year of 1997. It has been a typical company. The company has 360 workers or the employees, and the annual revenue is $176M, the group is bigger than and produces a huge amount of income than the mediocre internet access organization in Australia (Davis and Davis, 2012). Verizon group has three headquarters or branches or subsidiaries. In New South Wales, an average organization has mostly 47 and five employees, its mean that most of the people in Australia work this organization like Verizon Australia Ltd than other organization. The annual sales volume of the company actual is $176M. The company’s revenue is $489,339 per employee. Putting this in a perspective manner, the organization produces per employee is $215,288 and the company makes more than 127% revenue in each employee than the others well-known and furious group in Australia. This organization has three types of family members, this also incorporate headquarters, subsidiaries, branches, more and parent companies. This company is a foreign-owned company that generates the income from such types of provisions like telecommunication, IT, security and maintenance services and network installation. Verizon group offers telecommunication services to different kinds of companies in Australia incorporated internet security, running of networks, marketing, sales, construction, integration, network installation and also maintenance (Verizon Wireless, 2012). Verizon group mostly provides such following services to the customers like communication services, cloud and data center services, security services, machine to machine services, mobility services, network services, etc.

Conclusion

With the help of managerial accounting different features regarding the financial condition of the company can be calculated. The different features include profit, variance, unit cost and marginal cost. With the help of these statistics and figures available, it is possible predict the performance of the company in the near future. With the help of the accounting practices, it is possible to predict and understand the performance of the company. This study helped to provide a good knowledge about managerial accounting with the help of using Verizon Group as an example.

References

AHMED, A. and DUELLMAN, S. (2012). Managerial Overconfidence and Accounting Conservatism.Journal of Accounting Research, 51(1), pp.1-30.

Bamber, L., Braun, K. and Harrison, W. (2008). Managerial accounting. Upper Saddle River, N.J.: Pearson Prentice Hall.

Cruz Rambaud, S. (2010). Algebraic models for accounting systems. Singapore: World Scientific.

Davis, C. and Davis, E. (2012). Managerial accounting. Hoboken, N.J.: John Wiley & Sons.

Verizon Wireless. (2012). Washington, D.C.: U.S. Govt. Accountability Office.

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