(1) Distinguish managerial accounting from financial accounting.

Managerial accounting: managerial accounting provides information for managers inside an organization who direct and control its operations. It is concerned with information for the internal use of management. It emphasizes the future. It emphasizes relevance and flexibility of data. It emphasizes on non-monetary data and timeliness and put less emphasis on precision. Financial accounting: It provides information to stockholders, creditors and others who are outside the organization. Financial accounting may also be helpful in providing information to accomplish the management process. It is concerned with reports made to those outside the organization. It summarizes the financial consequences of past activities and diagnoses the past. It emphasizes precision and verifiability of the data. It summarizes data for the entire organization. It follows money measurement concept.

(2) Management accounting performs some of the controllership functions like business planning, decision making and cost controlling. Explain the statement and with illustrations distinguish controllership functions from treasure ship functions. The whole idea of managerial accounting is to assist strategic managers to perform management functions more effectively by providing relevant economic information. Management is the process of planning, decision making and control. Planning: It is the process of thinking in advance about future activities. It is a forward thinking process that contemplates to manage the uncertainties and risks. It is the act of controlling an organization from deviating from its goal. Planning is developing a detailed financial and operational description of anticipated operations. Decision making: It is the process of selecting the best perceived alternative from the available different options. It is to be done in all levels of management. It is all about choosing from among the available alternatives. The management team often comes across situations where decisions need to be taken considering the best interest of the organization.

Controlling: It is the process, which assures the management that the organization is not deviating from its basic philosophy. It is applied basically in the operational level because the actualization of the plans and strategies is done in this level. The component of management, which is engaged in ensuring that the organization operates in the intended manner and achieves its goals, is termed as controlling.

Difference between controllership functions and the treasure ship function are as follows: Controllership: Controller is the top accountant in an organization. Controllership activities are primarily related to the accounting process. It consists of major activities including financial record keeping and reporting, internal auditing, tax planning, cost accounting, managerial accounting, profit planning, accounting information system and so on. Maintaining financial discipline and profit maximization are the prime objectives of controllership functions. Controllership functions basically focus on the management of revenues and expenditures. Treasurer ship function: Treasurer is a financial manager in a staff position that is responsible for managing an organizations relationships with investors and creditors and maintaining custody of the organizations cash, investments and other assets. Management of capital and investment is a distinct area of treasureship functions. It consists of major activities like financial planning, dealing with capital and money markets, investment decisions, cash management, credit management and so on. Value maximization of the organization is its primary objective.

(3) Management accounts roles in an organization are as of strategic business partners and also management accounts performs staff function. Explain Management accounts roles in an organization are as of strategic business partners due to following reasons: Providing information for planning and decision making: Virtually all major plans and important decision made by internal users (managers) are largely rely on managerial accounting information which include financial and non-financial data to help manager with strategic planning and decision making.

Budgeting: One means of achieving goals is through budgeting. The budget indicates the top management desire to allocate resource and emphasize certain activities.

Assisting in daily operating: Directing and controlling day to day operation require a variety of data about the process of providing a good or service. The attention directing function of managerial accounting information directs a managers attention to issues that need their attention.

Controlling: The management team need data about the cost of providing goods or services in order to set price. Management compares actual cost incurred with those specified in budget analyzing and comparing actual cost incurred with those specified in budget analyzing and comparing actual performance to budget plans. When actual operation dont conform to the budget and possible negative consequences.

Motivating managers and employees: A key purpose of managerial accounting is to motivate managers and other employees to direct their efforts toward achieving the organizations goals. This motivates managers to achieve the organizational goals by communicating the plans, providing a measurement of how well the plan was achieved, and prompting an explanation of deviations from the plan.

Role of managerial accounting on a staff position: Managers who are only in directly involved in operational activities hold staff position. Apex staff includes the advisory board, the public relation manager and the chief in organizational chart plays an advisory role. Therefore, managerial accounting is a staff function. Main responsibilities of the management accounting is to keep economic information and to provide the relevant information to be strategic manager to make the business plans and economic rational. Therefore, the management accounts play a key role in planning, decision making and cost control. Management accounting acts as a business for the firm.