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Management Accounting: Principles, Role, and Techniques

   

Added on  2023-03-22

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UNIT 5 MANAGEMENT ACCOUNTING
Management Accounting: Principles, Role, and Techniques_1

Principles of management accounting
Management accounting is the branch of accounting which is used for
making internal decisions by the top management so that organisation can
become internally strong and perform well.
It is helpful to managers to take viable decisions so that organisation may
be benefited in the best possible way.
Various reports are being provided by it which helps management to
initiate control over various business costs and as such, aids in making
viable decisions.
Management Accounting: Principles, Role, and Techniques_2

Cont.
Management accounting information is not provided various
stakeholders' of the company as it is restricted only to
management.
It is used for analysing business conditions and then
accordingly take decisions for the betterment of the firm.
Management Accounting: Principles, Role, and Techniques_3

Role of management accounting and management accounting
systems
The role of management accounting is to provide
reports to management
To take effective and better decisions.
Inventory management system-
Inventory is an integral part of the company engaged
in the manufacturing sector so that production may be
carried out with much ease.
Management Accounting: Principles, Role, and Techniques_4

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