Answer to Question #292745 in Management for Manuella

Question

Consider the role of management accounting in relation to the company for which you work (or have worked). Discuss how the principles of management accounting can be utilized. What specific managerial accounting activities would be useful?

Answer 1

Management accounting helps the organisation in the following ways : a) Decision making : Management accounting helps in operational and routine decision making. b) Planning : It helps in making long term and short term plans for the organisation

The role of management accounting in a company is to analyze financial information for a period to assist managers in the decision-making process for achieving organizational goals.

The management accounting principles defined by the American Institute of CPAs (AICPA) are:

1. Influence
2. Relevance
3. Value
4. Confidence

Through the four global principles, management accounting activities such as strategic definition, control and direction will be managed more effectively.

The availability of data and information will provide greater support for the creation of value through greater vision of organizational environments, transparency and reliability to attract investments