Management Accounting

Chapter 5

 Management Accounting

5.1 Management Accounting

Managerial accounting, also known as cost accounting, is the process of

identifying, measuring, analyzing, interpreting, and communicating

information to managers for the pursuit of an organization's goals. The key

difference between managerial and financial accounting is managerial

accounting information is aimed at helping managers within the

organization make decisions, while financial accounting is aimed at

providing information to parties outside the organization.

Managerial Accounting

BREAKING DOWN Managerial Accounting

Managerial accounting encompasses all fields of accounting aimed at

informing management of business operation metrics. Managerial

accountants use information relating to the costs of products or services

purchased by the company. Budgets are also extensively used as a

quantitative expression of the business’s plan of operation. Individuals in

managerial accounting utilize performance reports to note deviations of

actual results from budgets.

Margin Analysis

Managerial accounting handles margin analysis to assess profits when

weighed against varying types of costs. Margin analysis flows into break-

even analysis, which involves calculating the contribution margin on

the sales mix to determine the unit volume at which the business’s gross

sales equal total expenditures. This information calculated by managerial

accountants is useful for determining price points for products and

services.

Constraint Analysis

Managerial accounting also manages constraints within a production line

or sales process. Managerial accountants determine where

principle bottlenecks occur and calculate the impact of these constraints

on revenue, profit, and cash flow.

Capital Budgeting

Managerial accounting involves utilizing information related to capital

expendituredecisions. Managerial accountants utilize standard capital

budgeting metrics, such as net present value and internal rate of return, to

assist decision makers on whether to embark on capital-intensive projects

or purchases. Managerial accounting involves examining proposals,

deciding if the products or services are needed, and finding the

appropriate way to finance the purchase. It also outlines payback periods

so management is able to anticipate future economic benefits.

Trend Analysis/Forecasting

Managerial accounting involves reviewing the trendline for certain costs

and investigating unusual variances or deviations. This field of accounting

also utilizes previous period information to calculate and project future

financial information. This may include the use of historical pricing, sales

volumes, geographical locations, customer tendencies, or financial

information.

Product Costing/Valuation

Managerial accounting deals with determining the actual costs of products

or services. Managerial accountants calculate and allocate overhead

charges to assess the true expenses related to the production of a product.

The overhead expenses may be allocated based on the quantity of goods

produced or other drivers related to the production, such as the square

foot of the facility. In conjunction with overhead costs, managerial

accountants use direct costs to properly assess the cost of goods sold and

inventory that may be in different stages of production.

For many people, creating and holding a presentation involves a great

deal of effort. It even leads to buck fever. To make matters worse, if the

presentation has to be given in English, it often entails double the effort

for native German speakers. We want to make your next presentation a

bit more effortless by introducing the most useful phrases and

expressions for an English-language performance.

Presentations have the advantage that many standard phrases can be

used at various points. Perhaps you wish to welcome the audience,

introduce the speaker and the topic, outline the structure, offer a

summary, or deal with questions. In all these situations, you can apply a

number of useful expressions that will make your presentation a

linguistic success.

WELCOME

At the beginning of each presentation, you should welcome your

audience. Depending on who you are addressing, you should extend a

more or less formal welcome.

Good morning/afternoon/evening, ladies and gentlemen/everyone.

On behalf of “Company X”, allow me to extend a warm welcome to you.

Hi, everyone. Welcome to “Name of the event”.

INTRODUCING THE SPEAKER

The level of formality of your welcome address will also apply to how

you introduce yourself. Customize it to match your audience.

Let me briefly introduce myself. My name is “John Miller” and I am

delighted to be here today to talk to you about…

First, let me introduce myself. My name is “John Miller” and I am the

“Position” of “Company X”.

I’m “John” from “Company Y” and today I’d like to talk to you about…

INTRODUCING THE TOPIC

After the welcome address and the introduction of the speaker comes

the presentation of the topic. Here are some useful introductory

phrases.

Today I am here to talk to you about…

What I am going to talk about today is…

I would like to take this opportunity to talk to you about…

I am delighted to be here today to tell you about…

I want to make you a short presentation about…

I’d like to give you a brief breakdown of…

EXPLANATION OF GOALS

It is always recommended to present the goals of your presentation at

the beginning. This will help the audience to understand your

objectives.

The purpose of this presentation is…

My objective today is…

STRUCTURE

After presenting the topic and your objectives, give your listeners an

overview of the presentation’s structure. Your audience will then know

what to expect in detail.

My talk/presentation is divided into “x” parts.

I’ll start with…/First, I will talk about…/I’ll begin with…

…then I will look at…

…next…

and finally…

STARTING POINT

After all this preparation, you can finally get started with the main part

of the presentation. The following phrases will help you with that.

Let me start with some general information on…

Let me begin by explaining why/how…

I’d like to give you some background information about…

Before I start, does anyone know…

As you are all aware…

I think everybody has heard about…, but hardly anyone knows a lot

about it.

END OF A SECTION

If you have completed a chapter or section of your presentation, inform

your audience, so that they do not lose their train of thought.

That’s all I have to say about…

We’ve looked at…

So much for…

INTERIM CONCLUSION

Drawing interim conclusions is of utmost importance in a presentation,

particularly at the end of a chapter or section. Without interim

conclusions, your audience will quickly forget everything you may have

said earlier.

To sum up…

Let’s summarize briefly what we have looked at.

Here is a quick recap of the main points of this section.

I’d like to recap the main points.

Well, that’s about it for this part. We’ve covered…

TRANSITION

Use one of the following phrases to move on from one chapter to the

next.

I’d now like to move on to the next part…

This leads me to my next point, which is…

Turning our attention now to…

Let’s now turn to…

EXAMPLES

Frequently, you have to give examples in a presentation. The following

phrases are useful in that respect.

For example,…

A good example of this is…

As an illustration,…

To give you an example,…

To illustrate this point…

DETAILS

In a presentation, you may often need to provide more details

regarding a certain issue. These expressions will help you to do so.

I’d like to expand on this aspect/problem/point.

Let me elaborate further on…

LINKS

If you want to link to another point in your presentation, the following

phrases may come in handy.

As I said at the beginning,…

This relates to what I was saying earlier…

Let me go back to what I said earlier about…

This ties in with…

REFERENCE TO THE STARTING POINT

In longer presentations, you run the risk that after a while the audience

may forget your original topic and objective. Therefore, it makes sense

to refer to the starting point from time to time.

I hope that you are a little clearer on how we can…

To return to the original question, we can…

Just to round the talk off, I want to go back to the beginning when I…

I hope that my presentation today will help with what I said at the

beginning…

REFERENCE TO SOURCES

In a presentation, you frequently have to refer to external sources, such

as studies and surveys. Here are some useful phrases for marking these

references.

Based on our findings,…

According to our study,…

Our data shows/indicates…

GRAPHS AND IMAGES

Presentations are usually full of graphs and images. Use the following

phrases to give your audience an understanding of your visuals.

Let me use a graphic to explain this.

I’d like to illustrate this point by showing you…

Let the pictures speak for themselves.

I think the graph perfectly shows how/that…

If you look at this table/bar chart/flow chart/line chart/graph, you can

see that…

EMPHASIS

To ensure that your presentation does not sound monotonous, from

time to time you should emphasize certain points. Here are some

suggestions.

It should be emphasized that…

I would like to draw your attention to this point…

Another significant point is that…

The significance of this is…

This is important because…

We have to remember that…

PARAPHRASE

At times it might happen that you expressed yourself unclearly and your

audience did not understand your point. In such a case, you should

paraphrase your argument using simpler language.

In other words,…

To put it more simply,…

What I mean to say is…

So, what I’m saying is….

To put it in another way….

QUESTIONS DURING THE PRESENTATION

Questions are an integral part of a presentation. These phrases allow

you to respond to questions during a presentation.

Does anyone have any questions or comments?

I am happy to answer your questions now.

Please feel free to interrupt me if you have questions.

If you have any questions, please don’t hesitate to ask.

Please stop me if you have any questions.

Do you have any questions before I move on?

If there are no further questions at this point, I’d like to…

QUESTIONS AT THE END OF A PRESENTATION

To ensure that a presentation is not disrupted by questions, it is

advisable to answer questions at the very end. Inform your audience

about this by using these phrases.

There will be time for questions at the end of the presentation.

I’ll gladly answer any of your questions at the end.

I’d be grateful if you could ask your questions after the presentation.

INQUIRIES

After answering a question from the audience, check that the addressee

has understood your answer and is satisfied with it.

Does this answer your question?

Did I make myself clear?

I hope this explains the situation for you.

UNKNOWN ANSWER

Occasionally, it may happen that you do not have an answer to a

question. That is not necessarily a bad thing. Simply use one of the

following phrases to address the fact.

That’s an interesting question. I don’t actually know off the top of my

head, but I’ll try to get back to you later with an answer.

I’m afraid I’m unable to answer that at the moment. Perhaps, I can get

back to you later.

Good question. I really don’t know! What do you think?

That’s a very good question. However, I don’t have any figures on that,

so I can’t give you an accurate answer.

Unfortunately, I’m not the best person to answer that.

SUMMARY AND CONCLUSION

At the end of the presentation, you should summarize the important

facts once again.

I’d like to conclude by…

In conclusion, let me sum up my main points.

Weighing the pros and cons, I come to the conclusion that…

That brings me to the end of my presentation. Thank you for

listening/your attention.

Thank you all for listening. It was a pleasure being here today.

Well, that’s it from me. Thanks very much.

That brings me to the end of my presentation. Thanks for your

attention.

HANDING OVER

If you are not the only speaker, you can hand over to somebody else by

using one of these phrases.

Now I will pass you over to my colleague ‘Jerry’.

‘Jerry’, the floor is yours.

CONCLUSION

We hope that our article will help you in preparing and holding your

next presentation. It goes without saying that our list is just a small

extract from the huge world of expressions and phrases. As always, the

Internet is an inexhaustible source of further information. Here are the

links to two websites that we would recommend to you in this context.