Why Management Accounting Is Important for Decision Making?
In a layperson's language, we can define management accounting as providing financial and non-financial decision-making information to managers. Managerial accounting is the process of assessing, interpreting and conveying financial information to the organisation's executives. The process entails the use of accounting software or ERP systems that provide financial reports, budgeting, and forecasting information which helps managers to analyse the variances between actual results from budgets. The job of a management accountant is to collaborate in decision-making and devise plans to assist the management in formulating and implementing an actionable strategy. A] Characteristics of Management Accounting Now that we know the definition of management accounting, let us look at some of its characteristics. Provision of financial information: The primary focus of [...]