Question

What are your thoughts of management accounting?

Answer 1

management accounting is the process of identifying, analyzing, interpreting and communicating information to managers to help achieve business goals.

management accounting and information system are an important part of the performance management,beacuse they play an integral part in producing the information that managers use to performance measurement and performance management.there is no legal requirement to prepare management accounts.the format of management accounts is entirely at management discretion: no strict rules govern the way they are prepared or presented.each organisation can devise its own management accounting system and format of reports.management accounts can focus on specific areas of a organisation's activities.information may be produced to aid a decision rather than to be an end product of a decision.

management accounts incorporate non monetary measures. management may need to know, for example, tons of aluminium produced,monthly machine hours,or miles travelled by salespeople.management accounts are both an historical record and a future planning tool.