Managerial Accounting Functions and Practices

Management Functions and Practices

Management Functions

• Planning: Planning requires management to look ahead and set goals and objectives.
• Directing: Directing is coordinating the organizations activities and human resources to produce a smoothly running operation. This includes implementing the objectives created in the planning function.
• Controlling: Keeping the company’s activities on track and determine if the company’s goals are being achieved.

Management Accounting Practices

• Value Chain: All activities linked together to provide a good or service.
• Enterprise Resource Planning (ERP): Software systems that manage the value chain.
• Computer-integrated Manufacturing (CIM): Production of products without the use of human labour.
• Just-in-Time (JIT) Inventory : Inventory system where goods are manufactured or purchased “just in time” for use, decreases inventory carrying costs because inventory is only acquired when it is needed.
• Activity-Based Costing (ABC): Assigning overhead based on a product’s use of various activities. Is a more accurate way of determining cost.