Managament accounting

Chapter 02b. Presenting information

the management accountant is involved in the presentation, dissemination and interpretation of information. In this chapter we will be looking at the ways in which information can be presented, disseminated and interpreted.

The management accountant is called the information manager because management accounting is concerned with the collection of data, its analysis and processing into information, and the interpretation and communication of that information so as to assist management with planning, control and decision making.

Reports are usually intended to initiate a decision or action. The decisions or actions might be the following types. (a) Control action. If the report describes what has happened in the past, a control action may be taken in an attempt to prevent a repeat of this behavior. (b) Planning decisions. Reports that are commissioned to advise on a certain course of action will include a recommendation about what decision should be taken.