SESSION 1

MANAGEMENT
ACCOUNTING
By: Sukanksha Singh
 What is Good
Information?
Accurate Complete

Information should be fair

and free from bias. It Accuracy of information
should not have any is just not enough. It
errors. Information comes should also be complete
directly or in written form which means facts and
likely to be more reliable figures should not be
than it comes from missing or concealed.
indirectly (from hands to Telling the truth but not
hands) or verbally which wholly is of no use.
can be later retracted.
 What is Good
Information?
Cost-beneficial Relevant

Information should be
analysed for its benefits Information should be
against the cost of communicated to the
obtaining it. It business right person. It means
context, it is not person which has some
worthwhile to spend control over decisions
money on information that expected to come out
even cannot recover its from obtaining the
costs leading to loss each information.
time that information is
obtained.
 What is Good
Information?
Timely Easy to use
Information should be
Information should be
understandable to the
communicated in time so
users. Style, sentence
that receiver of the
structure and jargons
information has enough
should be used keeping
time to decide appropriate
the receiver in mind. If
actions based on the
report is targeted to
information received.
new-comer in the field,
Information which
then it should explain
communicates details of
technical jargons used in
the past events earlier in
the report.
time is of less importance.
Difference between Data and
Information
 Enhanced Data Visualization
Use of Big
Data and Big data analytics leverages

Analytics advanced visualization tools (e.g.,

Tableau, Power BI) to present
complex datasets in understandable
formats, such as graphs, charts,
heat maps, and dashboards.
These tools help identify trends,
outliers, and patterns, making the
interpretation of data more intuitive
for stakeholders.
 Real-Time Data Analysis
Use of Big
Data and Organizations can analyze vast

Analytics amounts of data in real-time,

enabling them to make swift
decisions. For instance, financial
institutions can monitor
transactions to detect fraudulent
activities instantaneously.
 Predictive Analytics
Use of Big
Data and
Analytics
Big data tools apply machine learning
algorithms to predict future trends
based on historical data. Retailers,
for example, can forecast demand
and optimize inventory management.
 Segmentation and

Use of Big Personalization

Data and Big data analytics enables

Analytics segmentation of customers,

markets, or products, helping
organizations tailor their strategies.
For example, e-commerce platforms
analyze purchase history to
personalize recommendations.
Role of Cost and Management
Accounting
COST MEASUREMENT AND CONTROL

Identifies, records, and monitors the costs

associated with production or service delivery.
Provides insights into cost behavior, helping
managers control expenses and optimize
resources.
Role of Cost and Management
Accounting
DECISION-MAKING SUPPORT

Supplies relevant cost data for decision-

making, such as pricing strategies, make-or-
buy decisions, and product line evaluations.
Helps assess profitability and evaluate
alternative courses of action.
Role of Cost and Management
Accounting
PLANNING AND BUDGETING

Facilitates preparation of budgets, forecasts,

and financial plans.
Aligns organizational goals with available
resources, ensuring effective allocation and
utilization.
Role of Cost and Management
Accounting
STRATEGIC MANAGEMENT

Provides insights for long-term planning and

strategy development, such as market
expansion, investment decisions, and cost
leadership strategies.
Analyzes competitive position through tools
like benchmarking and value chain analysis.
Role of Cost and Management
Accounting
INVENTORY VALUATION AND COSTING

Determines the cost of goods sold (COGS) and

the value of inventory, aiding in accurate
financial reporting.
Uses costing methods like FIFO, LIFO, or
Activity-Based Costing (ABC) to improve cost
accuracy.
 Purpose of C&M
accounting

Provides managers with Helps organizations maximize

actionable information to the efficiency of resource use
make decisions that align by minimizing waste and
with organizational goals. managing costs effectively.
 Purpose of C&M
accounting
Offers detailed insights into Identifies profitable and non-
where and how costs are profitable segments of the
incurred, enhancing financial business, enabling focus on
clarity and accountability. high-value areas.
 Purpose of C&M
accounting
Ensures that internal Supports the implementation
processes comply with cost of cost-effective and
accounting standards and environmentally sustainable
contribute to financial practices.
reporting requirements.
Management Information Systems

A management information system (MIS) is an information system

used for decision-making, and for the coordination, control, analysis,
and visualization of information in an organization. The study of the
management information systems involves people, processes and
technology in an organizational context. In other words, it serves, as
the functions of controlling, planning, decision making in the
management level setting.
Decision Support Systems
A Decision Support System (DSS) is a
computerized system designed to assist
decision-makers in analyzing data, solving
problems, and making informed decisions. It
combines data, sophisticated analytical
models, and user-friendly interfaces to support
semi-structured or unstructured decision-
making processes.
Decision Support Systems
Typical information used by a DSS includes
target or projected revenue, sales figures or
past ones from different time periods, and
other inventory- or operations-related data.
Decision Support Systems
A decision support system gathers and
analyzes data, synthesizing it to produce
comprehensive information reports. In this
way, as an informational application, a DSS
differs from an ordinary operations application,
whose function is just to collect data.

The DSS can either be completely computerized

or powered by humans. In some cases, it may
combine both. The ideal systems analyze
information and actually make decisions for the
user. At the very least, they allow human users
to make more informed decisions at a quicker
pace.
Executive Support Systems
An executive information system (EIS), also known as
an executive support system (ESS) is a type of
management support system that facilitates and
supports senior executive information and decision-
making needs. It provides easy access to internal and
external information relevant to organizational goals.
It is commonly considered a specialized form of
decision support system (DSS)
Executive Support Systems
Executive support systems are intended to be used by
the senior managers directly to provide support to
non-programmed decisions in strategic management.
These information are often external, unstructured
and even uncertain. Exact scope and context of such
information is often not known beforehand.
Executive Support Systems
Transaction Processing Systems
A transaction processing system (TPS) is a type of data management
information-processing software used during a business transaction to
manage the collection and retrieval of both customer and business
data.
A TPS creates a fast and accurate execution environment, ensuring
data availability, security and integrity through various forms of
information processing. A TPS also provides customization and
automation features to expedite computer system processing activities
and enable reporting for business intelligence (BI) forecasting and
higher-level trend analysis
Transaction Processing Systems
THANK
YOU!