Search

Importance of Management Accounting In Companies

University:

  • Unit No:
  • Level: Post Graduate/University
  • Pages: 13 / Words 3210
  • Paper Type: Assignment
  • Course Code:
  • Downloads: 7387

INTRODUCTION

Grubnic and Birchall, 2014). Therefore, management accounting is based on the costing principles. Management accounting reports are for the internal assessment of an organization. These reports usually consist of details about the cash, sales revenues as well as the organization's accounts payable and receivables (Bebbington, Unerman, and O'Dwyer, 2014). The present report is going to discuss various useful aspects of management accounting along with their applications. Along with that different types of costing methods specifically absorption and marginal costing will be discussed in detail. The present report effectively addresses the importance of management accounting in companies. The various uses and applications of management accounting have been analyzed. Also, necessary examples have been cited for the purpose of establishing the relevance of the different aspects used in management accounting. Moreover the explanation of how management accounting can be used to improve the cash flows and financial returns of the business.

SECTION-1

1. Importance of Management Accounting

Management Accounting makes an efficient partnering with the other financial aspects of an organisation. It also has a great significance in the decision-making, devising planning and performance management systems and thus providing expertise in financial reporting and control to assist the management in the formulation and implementation of an organisation strategy (Bebbington, Unerman, and O'Dwyer, 2014). Following are some of the reasons highlighting the importance of the use of management accounting concepts in various organizations.

Measuring Performance- Two types of performance can be measured with the help of management accounting. Firstly, analysis is made at the individual employee’s level that is the performance of employees. Secondly, the efficiency of performing various tasks is measured with that of their respective standards maintained by the organization. In this process, actual performance is compared with the standard performance and the deviations are analysed as well. These deviations will be finally reported to the management and hence individual accountability for different tasks will be established (Sandalgaard and Nikolaj Bukh, 2014). This will help in the performance assessment of each employee and the respective departments. Also, the policies regarding incentives can be framed with reference to their performance (Bebbington, Unerman and O'Dwyer, 2014).

Risk Assessment- This is also one of the major objectives of management accounting. It is used for the assessment of risks and for managing them effectively in order to prevent any uninterrupted business operations.
Systematic Allocation of Resources-udgeting is an important area in management accounting which includes the allocation of resources for different business operations. This will prevent the wastage and production of damaged units in the company. Proper resource allocation is also important for the purpose of efficiently managing all the scarce resources available in the organisation. The management accountant has been appointed to utilise the current resources as their primary aim is to minimise the costs. Cost reduction is the basic factor which is followed by devising strategies to ensure the achievement of several goals and objectives. The resources that are financial resources are optimally utilised in the best possible manner to facilitate various users. The budgeting will determine the current requirements of the resources in a business to meet the needs and expectations of the existing

Download Full Sample
Cite This Work To export references to this Sample, select the desired referencing style below:
Assignment Desk.(2024) Importance of Management Accounting In Companies Retrieved from: https://www.assignmentdesk.co.uk/free-samples/accounting/importance-of-management-accounting-in-companies
Copy to Clipboard
Importance of Management Accounting In Companies Assignment Desk ,(2024),https://www.assignmentdesk.co.uk/free-samples/accounting/importance-of-management-accounting-in-companies
Copy to Clipboard
Assignment Desk (2024) Importance of Management Accounting In Companies[Online]. Retrieved from: https://www.assignmentdesk.co.uk/free-samples/accounting/importance-of-management-accounting-in-companies
Copy to Clipboard
Assignment Desk Importance of Management Accounting In Companies. (Assignment Desk, 2024) https://www.assignmentdesk.co.uk/free-samples/accounting/importance-of-management-accounting-in-companies
Copy to Clipboard
Assignment Desk Importance of Management Accounting In Companies. [Internet]. Assignment Desk.(2024), Retrieved from: https://www.assignmentdesk.co.uk/free-samples/accounting/importance-of-management-accounting-in-companies
Copy to Clipboard
Struggling with writing assignments? Take our academic writing services to resolve your problems. We not only provide online assignment help but also various other services like thesis, dissertation, and essay writing services. If you have any doubts about our experts, then we suggest you check our “Samples” before seeking dissertation help from us. Our experts can ease the complexity of your work. All you have to do is ask, “Can you do my assignment?”
Boost Grades & Leave Stress

Share Your Requirements Now for Customized Solutions.

Lowest Price
USD 6

    Delivered on-time or your money back

    100+ Qualified Writers

    For Best Accounting Assignment Help

    View All Writers
    FREE Tools

    To Make Your Work Original

    • tools Paraphrasing Tool

      Check your work against paraphrasing & get a free Plagiarism report!

      Check Paraphrasing
    • tools Plagiarism Checker

      Check your work against plagiarism & get a free Plagiarism report!

      Check Plagiarism
    • tools Dissertation Outline Generator

      Quick and Simple Tool to Generate Dissertation Outline Instantly

      Dissertation Outline Generator
    • tools Grammar Checker Tool

      Make your content free of errors in just a few clicks for free!

      Grammar Checker
    • tools Essay Typer

      Generate plagiarism-free essays as per your topic’s requirement!

      Essay Typer
    • tools Thesis Statement Generator

      Generate a Compelling Thesis Statement and Impress Your Professor

      Try Thesis Generator Tool

    Professional Academic Help at Pocket-Friendly Prices!

    Captcha Code refresh

        Estimated Price

        USD 6.32 25% OFF
        Total Price USD 6
        182532+Delivered Orders 4500+PhD Writers 4.8/5Client Rating

         
        AD whatsapp

        Limited Time Offer

        Exclusive Library Membership + FREE Wallet Balance