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 Term Paper on Techniques used by management accountant and usefulness of management accounting information in the public sector
According to the Chartered Institute of Management Accountants (CIMA), Management Accounting is "the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information used by management to plan, evaluate and control within an entity and to assure appropriate use of and accountability for its resources. Management accounting also comprises ...
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 contribute to the realisation of the organisational goals. The purpose of accounts is to allow companies to record, analyze and retrieve ritical financial information that can be used to determine a company’s financial status and provide reports and insights needed to make sound financial decisions. Accounting is a business discipline which allows companies to analyze, record and retrieve critical financial information that can be used to determine a business? or company’s financial status and provide reports and insights that are needed to make sound financial decisions.
