Management Accounting Is Recognised As A Working Tool For Organisations Management

1522 Words Aug 10th, 2016 7 Pages
Management accounting is recognised as a working tool for organisations management. It performs the optimum link between labour, materials, machinery, production strategy and control function by supporting the management team in detecting company weak points and providing solutions to improve (Prasad & Sinha, 1990).
Concentrates all accounting functions on the company administration with accounting analysis, budgetary control, costing. Also, recognised as the term that best describes the different accounting methods, systems and techniques to support management to maximise profit and minimise losses. Yet, makes use of management principles to plan, develop, execute and control the business strategy (Prasad & Sinha, 1990).
Conceptually, management accounting is the operation of identification, measurement, analysis, preparation, interpretation and communication of financial data that serves as resource to support the management team on planning, evaluating, controlling the organisation performance, supporting as well the preparation of the financial reports so the financial accounting finalizes those and present to users’ groups interested on the organisation performance during certain period of time, such as regulatory agencies and tax authorities (Shim & Siegel, 1999).
Furthermore, the management accounting employes financial accounting techniques and information such as proportion of equity, preference share and loan capital and sources of capital to rearranges its…

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