Author(s)

Wang Fengzhou, He Shu, He You

Corresponding Author

Wang Fengzhou

Abstract

The basic accounting assumptions are reasonable judgments about the environment in which accounting exists and are the premise of accounting activities. Management accounting is an interdisciplinary subject including accounting and management. Therefore, when discussing the basic assumptions of management accounting, we should fully consider the characteristics of its interdisciplinary interaction. Based on the four assumptions of financial accounting, this paper proposes that management accounting should contain six main assumptions. They are: multi-responsibility accounting entity, life cycle-based sustainable management, decision-based flexible accounting staging, monetary measurement and full emphasis on non-monetary measurement, information predictability and different costs for different purposes.

Keywords

Management accounting, financial accounting, basic assumptions