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Management accounting is the process to prepare management reports and accounts. These reports and accounts provide accurate and timely financial and statistical information required making day-to-today and short term decisions by the managers for improvement in business. Management accounting is prepared on weekly or monthly basis for an organization’s internal use. It is mostly used by department managers or chief executive officers. These reports shows the amount of cash available, state of account payable and account receivable, sales revenue generated, orders in hand, outstanding debts, raw material and inventory and other statistics. Management accounting is important in business because it has potential to change business performance and financial position.
Advantages of Management accounting:
It helps in controlling wastage and defects. It also supports to improve the efficiency of management functions.
* It helps in increasing the profit percentage by controlling the cost of production.
* It enables communication between all the levels of management.
* To assess the external environmental impact on the organization, it proactively analyzes the government policies and socio economic scenarios.
* Most important advantage of management accounting is that can be used for controlling business’s cash flow. An accountant deeply studies from where is money coming and where is it going. To keep a track of cash flow and to see if there is any misuse of it will surely help in maximising profit for the company.
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To understand any subject; it’s necessary to show interest in the subject matter, which is possible if one is well acquainted with the concepts. Not only this, management accounting assignment needs your time and patience because it is difficult to understand the underlying concept. The reason is the broad area that it covers. This is why we offer our online management accounting assignment help services to ease your burden and save your time.
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