The Role And Role Of Management Accounting

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Management accounting is about adding real value to the organization by combining accounting, finance and management with the business skills and techniques. It involves in management decision making, devising planning and performance management systems. Management accounting provides expertise in financial reporting and administer to assist management in the formulation and implementation organization's strategy.
The professional body for management accountants CIMA, defines management accounting as ‘the application of the principles of accounting and financial management to create, protect, preserve and increase value for the stakeholders of for profit and non- profit enterprises in the public and private sectors. Management accounting is …show more content…

However, the function and the objective of cost accounting is similar to management accounting. Hence sometime authors refer to management accounting and cost accounting as the same.
Main areas involved in management accounting includes costing, Planning, Control, decision making, and performance evaluation. Costing determine how much it is costing to produce, this helps to determine the selling price. Planning involves defining objectives and assessing future cost and revenues.
As, management accounting plays a crucial role in every organization, there is a qualified recruit to carry out management accounting. This recruit or employee is known as management accountant. The role of the management accountant is to handle all financial matters and ensure the organizations financial security. Management accountants help to drive the business’s overall management and strategy and also plays an important role in determining the status and success of the organization. Management accountant’s advice managers on the financial implications of big decision. The sustainable success of the organization and the solutions to the issues are derived from the information provided by the management accountants. These information’s assist in formulating business strategies and monitoring

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