What is Management Accounting ?
The process of
creating organization goals by identifying, measuring, analyzing, interpreting
and communicating information to managers is call management or managerial
accounting.
Management accounting, also called managerial
accounting or cost accounting, is the process of analyzing business costs and
operations to prepare internal financial report, records, and account to aid
managers’ decision making process in achieving business goals. In other words,
it is the act of making sense of financial and costing data and translating
that data into useful information for management and officers within an
organization.
What is Function of Management Accounts ?
Management accounting is the process of preparing
repots of business operation help for short term and long term decision
management. The main Functions of management accounting are follow .
- 1. Helping of Make or Buy Decision
- 2. Cash flow Forecasting
- 3. Help in variance Performance
- 4. Help in the Future Forecast
What is Management Accounting System ?
Management Accounting System are used in decision making Process of
Business . A manufacturing company use this system for achieving your certain
goals . This system very important for any industries
What are limitation of Advance management Accounting ?
Management accounting have very useful for industries but management
accounting with some limitation we should remember following point when use management
accounting system .
- 1. Management
accounts based on Records
- 2. Intuitive Decision
- 3. Management accounting not substitute of
Administration
- 4. Unqualified variable in management accounting
- 5. Management accounting process is very costly
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