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Explaining Meaning and Significance of Management Accounting Systems

   

Added on  2023-02-02

8 Pages848 Words81 Views
MANAGEMENT ACCOUNTING

TASK
P1. Explaining meaning of management accounting and significance of
its systems
Management accounting refers to the profession that includes participating
in the decision making of management, devising for planning, system of performance
management. It provides for facilitating expertise in the financial reporting and also
controlling for enabling the management in formulating strategy of an enterprise.

Continued
4 major principles of MA are as follows-
Influence- Effective communication of the crucial information ensures possibility for
the MA in cutting across the silos and encourages for an integrated process.
Relevance- MA seeks for best possible availability of the resources for the information
that is pertinent to decision that is to be taken.
Value- It entails for assessing an information along with generating value pathway,
concentrating on risks, gauging for the possible opportunities, expenses and possibility
of value generation opportunities in the business.
Credibility- Stewardship forms a credibility where responsibility and the scrutiny assist
in making the decisions more and more purposeful.

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