Analyze the Nature and Purpose of Management Accounting
The purpose of management accounting is good for planning for the future requirement of the firm. It also allows for management accountants to help solve problems between the employees and the upper level management. Other purposes include helping accountant to carry through with the prior plans, analyzing information and creating reports which generate recommendations which help the firm to have more solutions than problems.
The primary role of management accounting is to information in a timely manner to the company’s provide relevant management to help them plan and control the activities of the organization and with which optimal and sound decisions can be made. All the topic areas examined relate to this primary role. Although this role and its related topics covered are clearly understood by most, if not all candidates or even managers in the organizations, different types of relevant information are needed for different organizations at different times for different situations and purposes. Therefore business skills and sense are often required when tackling organizational problems along with good analytical and writing skills.
Management accounting deals with information that is not generally disseminated outside a company, such as salary cost, profit targets and cost of materials per unit produced. Whereas the general purpose financial statements of financial accounting are assumed to meet the basic information needs of most external users, managerial accounting provides a variety of specialized reports for division managers, departmental heads, project directors, section supervisors and other managers within the company.
The main Purpose of the management is to steer an organisation towards its goals or purposes by assigning activities that its members perform. If Management makes sure that all activities are designed successfully, then each individual worker's production will...
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