Question

This course has covered various aspects of managerial accounting that are meant to give you the foundation needed to understand, analyze and evaluate a company’s performance as a company manager as well as an external user of financial information.

• Given your personal and professional goals, which of these tools will be of greatest benefit to you (describe at least 3)? Why? Be specific.

Answer 1

Managerial Accounting – Major 9 tools are available, which all help us to understand about financial performance , growth etc. The objectives are –

1. Assistance in planning and formulation of future polices
2. Helps in Interpretations of Financial Information
3. Helps in controlling performance
4. Helps in Organization structure
5. Helps in to solve of strategic business problems
6. Coordination Operations
7. Motivating employees

From Personal + Professional point – most key objective of Managerial Accounting –

1. Planning and formulation – Planning is a such a fantastic tool , which decide in advance what to be done , when to be done and how it is to be done and by whom . This tools help us to understand or derived goals , framing policies , determining alternative course of action . Forecast is backed by proper planning
2. Helps in Controlling performance – This is another important tool , which help us to do establish proper budget and monitor budget and actual movement . This tools hemp us to take suitable action in order to correct te adverse deviations by revising the budget needed

Helps in organizing- With help of this tool, we can established good internal control system, cost control mechanism , financial control and responsibility .