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Management Accountancy Concept
Management accountancy (also designated by
analytical accountancy or also internal accountancy) is one of the
accountancy’s fields and that supplies information about the financial
position and about the formation of results from the entity to the
internal individuals, namely intermediate and top managers.
Unlike general accountancy, management
accountancy is less subject to external rules, being each one of the
entities to clarify its own criteria for its performance. These
performance criteria of management accountancy should be established in
a way to help the several management levels to take sustained decisions
as to the quality, costs and processes efficiency that allow the
maximization of its offer regarding quality/price.
The information produced by a management
accountancy system can include, for example, the operation costs of a
section or department or the production and supply cost of a product,
service or activity. This way, only from the management accountancy is
possible evaluate the profitability cost of a certain product, service
or activity. The same way, also only with the management accountancy
support is possible to evaluate the performance of an entity’s
operational unit, section or department. In order that the entity
becomes efficient and competitive in all of its sectors and activities,
is therefore indispensable that develops and maintains a good management
accountancy system, that supplies accurate and updated information about
its different activities, products and services.
Translated from Portuguese
by Susana Saraiva, Portuguese-English and English-Portuguese translation
specialist. Contact: spams@sapo.pt.
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