Determine the functions of management accounting, Managerial Accounting

Assignment Help:

Determine the Functions of management accounting:

1. Planning and forecasting: management fixes various targets to be achieved by the business in near future. Planning and forecasting are essential for achieving business objectives. One of the important functions of the management accounting is to help management in planning for short term and long term periods and also in making forecasts for the future.

2. Modification of data: management accounting helps in modifying accounting data. The information is modified in such a way that it becomes useful for the management.

3. Financial analysis and interpretation: management accountant undertakes the job of presenting financial data in simplified in way. Financial data is generally collected and presented in a technical way.

4. Facilities managerial control: management accounting is very useful in controlling performance. All accounting efforts are directed towards control the enterprise. The standards of several departments and individuals are set up.

5. Communication: management accounting establishes communication within the organization and with the outside world.

6. Use of qualitative information: the field of management accounting is not restricted to the use to monetary data only. It collects and uses qualitative information also.

7. Helpful in taking strategic decision: management accounting helps in taking strategic decision. It supplies analytical information regarding various alternatives and the choice of management is made easy.

8. Coordinating: the co-ordination among different departments is essential for smooth running of the concern. Management accountant as a co. Coordinator among different financial departments through budgeting and financial reports.

9. Supplying information to various levels of management: every management levels of needs accounting information for decisions making and policy execution. Top management takes broader decisions and leaves day to day decisions for the lower levels of management. Management accountant fees information to different levels of management so that further decisions are taken. The supply of adequate information at the proper time will enhanceefficiency of the management.

 


Related Discussions:- Determine the functions of management accounting

Financial, IF net income totaled $18,000 for one year, beginning assets wer...

IF net income totaled $18,000 for one year, beginning assets were $100.000 and ending assets were $140,000, then Return on Assets for the year as a percentage will be?

What are the requirements of a good budgeting system, Requirements of a goo...

Requirements of a good budgeting system Following are the requirement of a good budgeting system: 1) Budgeting process should be backed and supported by the chief executive

Management accounting influence, Management Accounting Influence (A) ...

Management Accounting Influence (A) Transfer pricing and performance measurement relies upon the judgment of the management accountant to make a suitable choice of approach

Just-in time inventory management-jit production , Just-in Time (JIT) Inven...

Just-in Time (JIT) Inventory management JIT is a system whose purpose is to generate or to purchase products or components as they are required by customers or for use rather

Explain indirect expanses, Explain Indirect expanses: These are expanse...

Explain Indirect expanses: These are expanses which can't be directly conveniently and wholly allocated to a specific cost centres or cost units examples of such expanses are h

Explain the methods of pricing, Explain the Methods of pricing The fol...

Explain the Methods of pricing The following methods are used for intra company transfer pricing: 1) Total cost method: transfer is made at absorption cost which is the t

Investments carried as trading securities, a)    Does Ford report any inves...

a)    Does Ford report any investments carried as trading securities, available-for-sale securities, or held-to-maturity securities? If so, go over their significance to both the b

State the capital turnover ratio, Capital turnover ratio  Meaning: th...

Capital turnover ratio  Meaning: this ratio establishes a relationship among net sales and capital employed. Objective: the objective of computing this ratio is to verif

Case law & study, You are charged with describing the important considerati...

You are charged with describing the important considerations in the decision-making process to upper management. In your response, be sure to include the following: • A descript

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd