Answer: Management accounting is the decision-making accounting. It presents data in such a way so as to help management in policy-framing and day to day running of the Organization. Management Accounting refers to accounting for the management i. e. accounting which provides necessary information to the management for discharging its functions. These functions are: planning, organizing. …
Introduction to management accounting
For running any business activities resources are needed. The business activities are: Production, sales, planning and huge capital investment. The nature and scope of business have considerably changed. Finance helps in conducting business activities smoothly. In the days past, things were no so as these are today, the large scale business which needs huge capital investment long tun planning and low level of accounting which was confined to know the operation result after a specific period generally after a year, to know the financial position of the organization.
The change of nature and scope of business the Accounting System has gone considerable change. The accounting in modern times is a branch of providing various information needed for decision making such as: make or buy, close or continue work by man or machine, be purchased or on lease etc. In this chapter, an effort is made to explain the salient features of management accounting which provides a useful aid to management.