Page 202 - F1 - AB Integrated Workbook STUDENT 2018-19

Chapter 13

Management accounting

3.1 Management accounting

Management accounting is carried out to assist management in
discharging their duties to plan, direct and control the operations of the
business. It is concerned with the process of measuring, analysing,
interpreting and communicating information to management in a form
which is easy for them to understand.

While there are no legally required formats for management accounts, there are
several key management reports that are common to many businesses.

Three of the most common are:

 cost schedules

 budgets

 variance reports

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