Managerial Accounting And Its Techniques

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Running head: MANAGERIAL ACCOUNTING AND ITS TECHNIQUE 1 MANAGERIAL ACCOUNTING AND ITS TECHNIQUES 12 Managerial Accounting and Its Techniques Melissa Reppert BUS 630: Managerial Accounting Dr. Veliota Drakopoulou May 11, 2015 Introduction Management Accounting is an important activity within an organization. It plays several functions in any organization through the actions undertaken by management accountants. According to our textbook, "Managerial Accounting is the branch of accounting that meets managers ' information needs" (Schneider, 2012). The management accounting information is distributed to all the other departments of an organization and thus require a set of standards and ethics to be observed (Adams, 2002). For this reason, management accountants must observe the ethical standards developed as a guide for their profession. They have to consider objective in undertaking and their actions during the processes of giving out the reports on the financial information. In the Management Accounting profession, there are a number of techniques or methodologies that are used to administer the role of this organization segment. Some of the techniques used in this profession include Just in Time (JIT) ABC system, Make-Buy analysis and inventory management. These techniques play several roles and have a wide range of application within an organization. They can help reduce costs, thus enhancing
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