What do they teach in Management Accounting?

The main point of this course is to understand the basic accounting process for a business in order to make effective company decisions based on its accuracy. Management Accounting can be a very useful course whether you want to use it as an employer or as an owner of a company. Some examples of how this information is used are - how much the company is making compared to what its costs are, how many employees are needed to complete a project and how many employees the company can afford to pay, if the company should expand or minimize its spending, or if money is missing, etc.

The course is usually taught in 5 stages for better comprehension. The course covers following areas in the specified order-

1) Generally accepted accounting terms.
The terminology, understanding of the accounting vocabulary used in the professional world, is basic and self explanatory. It is used on a regular basis in the business world from all aspects of the decision making process.

2) Financial reporting for corporations.
Reports, a detailed list of forms that show a list of accounts and how they have been affected in that report period, for any type of corporation are used in many different ways and are a vital aspect to its stability and success. Corporations use reports in two ways which include making buying or selling decisions as well as time management decisions.

3) Introduction to budgeting
The purpose of a budget is to estimate expenses and income along with what is available to use for new tasks or a needed decrease. A company uses a budget to keep from overspending and plan for future spending.

4) Introduction to cost accounting
This tracks the effectiveness of a budget and whether or not the budget is working or if changes need to be made in order to achieve its goals.

5) Introduction to management accounting (decision making)
Bringing all of these tools together and making a base for financial business decisions according to company accounts and their effectiveness. Being able to understand all the steps leading up to the decision making aspect is key to making profitable business choices.

*Helpful tips.
Accounting classes are fast paced with a lot of material to cover in a short period so it helps to prioritize your attention. The key is to understanding the basic accounting equation and how it affects the entire process. Repetition is an effective tool in this course. With the knowledge, this class teaches you to be able to understand the process of company accounts and how to make informed decisions based on its outcome.