Management Accounting Techniques and Decision-Making Tools

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Management
Accounting information

Table of Content
• Introduction
• Information on management accounting
• Various types of management accounting methods
• Budgets analysis
• Variance analysis
• Decision making tool in business
• Business forecasting
• Analysis of ratios
• Benefits of decision making tool
• Conclusion
• References

Introduction
• Management accounting is an adequate method for any organisation
as it provides appropriate information in the financial report.
• The presentation involves various techniques of management
accounting which will benefit the organisation to make appropriate
decision.
• Various decision making technique will be explained which will benefit
the company in making appropriate decision for their business.

Information on management
accounting
• Management accounting helps in making plans, computes, design, operates various
function in business, as it includes both financial and non-financial factors.
• The company can use it for analysing the accurate information by creating and
managing the managerial report.

Various types of management
accounting methods
• Financial statements
• Budget analysis
• Analysis of variance
• MIS
• Business forecasting

Budget analysis
• It is the cost which is predetermined by an organisation.
• The budget helps in making assumptions for the business revenues
and expenses.
• The budget uses financial information of the company for making
estimation of the future productions, expenses and sales.

Variance analysis
• The variance analysis helps in analysing the deviations in the financial
performance by comparing the budgeted and actual results.
• The company uses variance as it helps controlling performance of the
operations.

Decision making tools in business
• Forecasting
• Increment in capital
• Ratios
• Investment
• Trend comparison

Business forecasting
• It is one of the effective method for making adequate decision.
• It represents the expected scenario of the future.
• By analyzing the previous data assumptions are made for the future.

Analysis of ratio
• Gearing ratio
• Solvency ratio
• Profitability ratio
• Liquidity ratio
• Performance ratio
• Activity ratio
• Inventory ratio

Benefits of decision making tool
• The use of decision making tool helps in the company helps in getting
financial information regarding business operation which helps in
increasing the performance.
• It helps in enhancing the productivity and sales which also enhances
the profitability of the business.
• This tool helps in providing the adequate information which helps in
making the decision.

Conclusion
• The above brief concludes that management accounting is an
important method for company’s business.
• It benefits the company in providing proper decision and adequate
information.
• It helps in providing financial and non-financial information of the
business.