Question

what functional role do management accountants play in the budgeting process

Answer 1

Management accountants help to implement a budget. Therefore, their role is to coordinate in the budgeting process – they provide data, clarify the implications of data, finding the ways of financial securities of the firm, presenting the skillful expertise in budget, etc. Overall, they give all sorts of involvement in successful execution of a budget.

Example: Suppose the top management hired a management account and asked him to prepare a budget which can give increasing profit although revenue is not increasing. The account starts working and realized that there are areas where cost or expenses could be minimized (like employee welfare, electricity charges, waste of materials, etc.). He researches all these areas and prepares a budget which reflects reduction in cost and increase in profit.