Q.1: Define the term ‘Management Accounting’. Discuss its features and importance.

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. …

Read moreQ.1: Define the term ‘Management Accounting’. Discuss its features and importance.

Q. 3. What is the scope of management accounting? What are the main differences between management, financial and cost accounting ?

Answer The scope, tools and techniques of management accounting are as under: 1. General Accounting. The general accounting records, external transactions covering cash receipts and payments, liabilities and setting up of sales and receivables. It also covers preparation of regular financial statements which are prepared from various account balances. 2. Cost Accounting. It consists of the application …

Read moreQ. 3. What is the scope of management accounting? What are the main differences between management, financial and cost accounting ?

Q. 2. What are the important functions of Management Accounting? Discuss limitations of management accounting.

Answer: The main functions of Management Accounting are summarised as: 1. Useful in Planning. Management accounting is very useful in planning. Before planning management has to evaluate past and future strategy. The Management Accounting provides past data on the basis of which future line of action can be chosen. 2. Decision-making functions. Before taking up …

Read moreQ. 2. What are the important functions of Management Accounting? Discuss limitations of management accounting.