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P-1- MANGAMT ACCOUNTING 

P1: Explain management accounting and give the essential requirements of different types of management accounting systems. 

[Expected answer guideline:  

What is management accounting? (Definition of management accounting. Element of subjectivity in 
management accounting)  
What are the key functions of management accounting system? (Provide data, modifies data, analyses 
and interprets data, serves as a mean of communication, facilitates accounts control, qualitative and 
quantitative information)  
 

EXAMPLES: … ESS, DSS, MIS, EIS, PEACH TREE, ORACLE FINANCIAL, SAGE LINE.ETC 

Define and give one comprehensive example of each. 

(Financial accounting system: rules and procedures, accounting information systems and internal control, 
auditing)  
 

Cost accounting system: (product costing, activity based costing) 

Management accounting system: (decision support, organizational control, profit management, 

investment management) 

Tax accounting: (individuals, partnerships, corporations, international taxations, GST, HM Revenue)

REF:

Management Accounting for Decision Makers, 6 th edn, Prentice Hall Financial Times, Pearson Education • Cost Accounting Systems, Obaidullah Jan,

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