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Management Accounting

Management Accounting is used for analysis of the company with inside (secret) data and for decision making. Only the accounting with periodic data is not enough.

Management Accounting includes various tools. In this page, I introduce "Beyond Budgeting" and "Activity-Based Costing". Financial Analysis , Balanced Score Card , Value Engineering , Profitability Analysis , Theory Of Constraints and Environmental Management Accounting are also the parts of Management Accounting.

Beyond Budgeting (BB)

Budgeting often needs too much time to make. And it is not good soft and speedy change. "Beyond Budgeting" is made to solve these problems.

Beyond Budgeting is not an approach.

Activity-Based Costing (ABC)

The relationship between indirect costs and products. "Activity-Based Costing" put "activity" between indirect costs and products.

Activity-Based Management (ABM) is the management using ABC. ABM is a good system to estimate the effects of Teaming and KAIZEN .

Activity-Based Budgeting (ABB) is the budgeting using ABC.

Fixed and Floating

When costs are divided into fixed costs and floating costs, management is easier. But dividing not so easy because costs are complicated.

Regression Analysis is an easy way to estimate the volume of each cost. An intercept ( Y value when X = 0 ) is the fixed costs. The difference total costs and fixed costs is floating costs.

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