Different Types of Management Accounting Information

Different type of management accounting
information that can be used in the business
 Management accounting is the one of the most important branch of
accounting because it help firm in measuring its performance for short time
period. By using management accounting tools firm performance in respect
to cost control can be easily measured. Different type of management
accounting information that can be used in the business are as follows.
 Budget: It is one of the most important tools that can be used by the Merlin
entertainment to control its expenses. Budget is a statement in which all
items of cash inflow and outflow are recorded in the systematic way. By
deducting cash outflow items from aggregate value of inflow net balance
that remain at end of the specific duration are identified. There are varied
sort of budgets that can be prepared by the firms .
 Some commonly used budgets are sales and production budget. By using
production budget manufacturing expenses are controlled by the firm. In
the budget value of expenses is determined and firms try to make all
expenses within the determined limit. Hence, lots of information in respect
to cost control targets are made available by the budget.

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Variance analysis: It is another important management accounting
tool that is used by the business firms to measure the extent to which
they successfully control the expenses. Application of this method of
management accounting helps business firms in identifying the
expenses that are made within the determined limit or exceed
standard value.
 Areas where performance was not good are identified and strategy is
formulated by using which to great extent in upcoming time period
cost can be controlled by the business firm.
In order to ensure that cost control strategy will be prepared in the
right direction after identification of variance reason due to which
same comes in existence is identified. Once the reason is identified
strategy is formulated to eliminate that reason from the business.