Management and Cost Accounting by Colin Drury

By Colin Drury

Colin Drury's administration and price Accounting covers the speculation and perform of administration and price accounting and comprises vast review questions and illuminating actual international perspectives. This textbook is excellent to be used on administration accounting and value accounting modules taught on undergraduate accounting classes and for college students getting ready for the price and administration accounting examinations of the pro accountancy our bodies at intermediate or complex point. it's also acceptable to be used through postgraduate and better nationwide degree scholars learning expense and administration accounting for the 1st time.

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Sample text

Inventories), dividends paid, the proportion of profits absorbed by taxation and so on. In addition, government taxation authorities require information on the amount of profits that are subject to taxation. All this information is important for determining policies to manage the economy. 1 Accounting information for human resource professionals People Management, the journal of the Chartered Institute of Personnel and Development (CIPD), provides an example of the importance of accounting information to human resources (HR) professionals.

The management accountant’s role is to provide managers with feedback information in the form of periodic reports, suitably analyzed, to enable them to determine if operations for which they are responsible are proceeding according to plan, and to identify those activities where corrective action is necessary. In particular, the management accounting function should provide economic feedback to managers to assist them in controlling costs and improving the efficiency and effectiveness of operations.

Most organizations record cost information in a single database, with costs appropriately coded and classified, so that relevant information can be extracted to meet the requirements of different users. We shall examine this topic in the next chapter. A BRIEF HISTORICAL REVIEW OF MANAGEMENT ACCOUNTING The origins of today’s management accounting can be traced back to the Industrial Revolution of the nineteenth century. According to Johnson and Kaplan (1987), most of the management accounting practices that were in use in the mid-1980s had been developed by 1925, and for the next 60 years there was a slow-down, or even a halt, in management accounting innovation.

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