QUESTION TWO - ANSWER ALL PARTS PARTA Many articles in management accounting journals, especially during the last decade, have suggested that there is an increased need for management accounting information

A )

In management accounting manager use the provision of accounting information inorder to better inofrm themselves before they decide thier matters witihin thier organisation.By shortly saying management accounting is the provision of financial and non financial decision making information to managers.It include partnering of management decision making ,devising planing and perfomance management system.Management accountants have the responsiblities to look at the events that happen in and around bussiness while considering the needs of the business.

Management accounting as practise extends to some areas: 1) strategic management adavancing the role of the mangement as a strstegic partners in the organisation. by using a startegic movement the organistion can increase thier level of activity. 2)perfomance management thier is an increase in the development of decision making perfomace of the managemnet. 3)risk management identification of the risk factors which related to the achievement of of the organisation.

There are some factors which increases the need of management accounting on organisations,they are:

planning and control: it is one of the factors which increases the need of management accounting in organisation beacuse it includes the working activities such as collecting cash, controlling stock,controlling expenses,coordination and monitoring of strategy, monitoring gross margins.without a palning and control an organisation cannot make any succes in the organisation or can't achieve the organisation goals. so it will bring the organisation in to a cotroled one.

Decision making :it is the next factors which incraese the role of mangement accountant in the organisation. it mainly focuses the factors include using cost of of information for pricing capital investment and marketing,evaluating the market and product profitability.evaluting the financial effect of startegies and plans.a firm can make good decision making regarding with the help of management accounting.

Record keeping:one of the factors which realted with the management accounting is that record keeping.it maintain the recording of bussiness transaction measuring result of financial charges, projecting finacial effects of finacial transaction, preparing internal reports in a user freindly format.

identification of trends in the bussiness: the managerial accounting will hep us to know about the compare the actual accounts with orginal budgets or forecast . so trends in the bussiness can be easily found out by using managerail accounting

these are some of the factors which will increase the need of managerail accounting in contempoarary organisation

B)

Managerial accounting the type of accounting providing information to management peoples who are inside the organisation who direct and control the organisation operations.But in financial accounting it is concerened with providing information to stock holders creditors and other who have outside the organisation .

The main objective of financial accounting are to disclose the end result of the organisation.and the financial postion of the organisation on a specific date.And in Management accounting is to help management by providing informtion that is used to plan set goals and evaluatethese goals.

financial accounting produces information that is used by the external parties such as share holders and lenders.But in managerial accounting produces the information that is used within an organisation by managers and employees

Financial accounting is legally prepared to share them with the investors.in management accounting reports are not legally required.

Finanacial accounting is mainly focuses on history reports on the prior quarter or year. In management accounting focusses on the present and forecast for the future.

Financial accounting are prescribed by standards such as GAAP or IFRS there are legal requirement for the companies to follow financial accounting standards.Management accounts reports are generally used internally within the organisation so they are not subject to the legal requirements

Financial accounting provides monetary verifiable information, but in management monetary and company goal driven information.

Reporting frequency and duration of financial accounting is defined annually semi annually quarterly and yearly.and in management accounting as needed daily weekly monthly.

These are the main difference between the finanacial accounting and managerail accounting.

The role of management accounting includes collecting recording and reporting financial data from several units of an organisation ,observe and analyse thier budget and suggest thier funding and allocation its main role is budgeting for a small companies budget are guide to all expenditure .estimation of cost of raw material and coordination of all activities,planing of the organisation is very important factors which related to the acievement of the goal.

The role of financial accountingis responsible for the periodically reporting information to business owners .it dictates the amount you owes to suppliers .it require adequate knowledge and understanding of financail accounting principles.it also anlyses the significant aspect of your business.