Role of managerial accounting

Managers want to know what products are best to manufacture now, but also desire to know where they should focus their efforts in the future. Management accountant has, therefore, to maintain an optimum capital structure and give due consideration to various cost of capital theories, leverage and possibility of trading on equity.

It must be pointed out that managerial accounting is a complex process mainly used in the decision-making by managers in order to achieve the organizational objectives.

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role of management accounting pdf

Individual entries are concise and not heavily detailed. Usually, any unsold finished goods or production in progress will not be included in the cost of goods sold which are compared with the sales revenue in a given period of time.

Controlling - a comparison between - is useful for the control process because it draws up achieved and planned performance reports that compare the actual to budgeted performance, so that revenue for each responsibility center.

techniques of management accounting

In an organization that produces a wide range of different products or servicesit will be necessary in order to evaluate stocks to divide expenses on each type of service or product. The data is then used to form practical financial decisions that can benefit the company's overall growth.

Maintaining Optimum Capital Structure: Management accountant has a major role to play in raising of funds and their application.

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7 Roles of Management Accountant