Scope of Management Accounting
cs executive cost and management accounting mcq objective notes
Management accounting is presentation of accounting information in such a way so as to assist management in the creation of policy and in day to day operation of an understanding. It includes financial accounting and extends to the operation of a system of cost accountancy, budgetary control and statistical data. The scope of management accounting includes:
• Formation, installation and operation of accounting, cost accounting, tax accounting and information systems.
• The compilation and preservation of vital data for management planning.
• Providing means of communicating management plans to the various levels of organisation.
• Providing and installing an effective system of feed-back reports to enable the management in its controlling function.
• Analysing and interpreting accounting and other data to make it understandable and usable to the management.
• Assisting management in decision-making by (a) providing relevant accounting, other data and (b) analysing the effect of alternative proposals on the profits and position of the enterprise.
• Providing methods and techniques for evaluating the performance of the management in the light of the objectives of the enterprises, thus assisting in the implementation of the principle of management by objectives.
• Improving, modifying and sharpening the effectiveness of co-existing techniques of analysis.