Management Accounting: Advantages and Disadvantages of Planning Tools

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Management Accounting

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 Management accounting is the process of creating firms
goals by measuring. Identifying, analysing, interpreting
and communication information to manager for
achievement of these goals. The main focus of
management accounting is to inform business about the
importance of business operation in working of business.
Thie information related to cost of products and services
will be identified in it. Budgets are used to qualify the
decision of business which are related to operational
planing
INTRODUCTION

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 A budgetary control is refers to the actions which is managed by
a company's through its financial execution that is planned and
carried out by several forms of budgets. In context to fashion
enter limited company, this is form of preparing their financial
performance which is used that is described as follows:
 Cash budget: It is defined to the form of budget that involves
the collection of information for anticipating cash revenue and
cost within a given period of time. Further, collection of
revenues and payments from loans which are involved in cash
inflow and cash outflow.
Advantages and disadvantages
of planning tools

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 Capital budget: It is refers to the budget which is
connected with assessment of long time investing funds of
a company. It involves buying of a property and a
building. Further, this budget gives a proper model of
buying and selling of large amount of liability. In fashion
enter limited the usage is done in long time funding
investments.
Advantages and disadvantages
of planning tools