Question

provide a real world example of how management accounting is being adopted in a company and / or an industry?

Answer 1

Management accounting is a partner in business decision making, planning, performance, controlling skills and support in management systems. Does. In this, management implements the organization's policy.

In management accounting, financial information is regularly presented. Management This presentation includes budgeting and in-depth study. This is why management helps to plan the business operations.

It is used to present business articles, various charts, budgets to make management decisions. If a product is not properly advertised, it is possible for the management to identify it constantly, as the accounts are presented on a continuous basis. This helps overcome future problems. Based on the information presented in the business, business management can make some changes to a product. Management accounting is not dependent on any law, so decisions are taken in areas where the analysis requires a lot of analysis.

In the real world, management is hardworking, so they can quickly detect problems as their data recovers. Management accounting helps management with financial information because they execute business functions more efficiently. Management accounting determines the number of units in a profit-making situation in a business. It determines the problems encountered in the organization and its consequences.

Understand the need to determine fixed assets and allocate the best finances to their costs and profits. Management's decision depends on the data provided by financial accounting.

In today's era all accounting systems appear to be automated, so the recorded information helps with financial accounting. Management accounting provides some framework for financial accounting that is done only at the end of the year. If some product is not performing well or causing unexpected damage, managing accounting helps identify its cause.