Question

The primary purpose of management accounting is to provide information useful for management decisions (at planning or control phase).

Required:

Discuss the statement above and support your opinion/argument with relevant review on the use of management accounting information in practice. You would need to choose any relevant profit organization as an example.

Requirement:

Minimum 1500 words

Answer 1

let us first understand the meaning of management accounting

Management accounting means accounting information used by internal management for their decision making in organization. management accounting is a dual helping analysing business and it's performance. management accounting help internal users in planning ,controlling ,staffing, organising etc

purpose of management accounting at planning phase:Management accounting for a necessary default browser analytical reports financial analysis ,ratios helps management of the organisation to make proper planning for further business activities and projects.

Purpose of management accounting at controlling phase:since the reports, ratios, analytical data, budget generate from management accounting helps in controlling the irrelevant cost and make effective utilisation of resources organization in an effective manner.

Example of organisation using management accounting is Walmart, apple, tinsco.& co. Etc