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    ritu paudel
    Management accounting techniques like cost-volume-profit analysis, standard costing, budgetary control, capital budgeting, and funds flow analysis assist management in making correct decisions. Management accounting helps management control organizational performance by comparing actual performance to operating plans, standards, and budgets, reporting deviations so corrective measures can be taken. It also coordinates operations, keeps management informed through regular reporting, and helps organize the allocation of human and non-human resources.

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    Management accounting techniques like cost-volume-profit analysis, standard costing, budgetary control, capital budgeting, and funds flow analysis assist management in making correct decisions. Management accounting helps management control organizational performance by comparing actual performance to operating plans, standards, and budgets, reporting deviations so corrective measures can be taken. It also coordinates operations, keeps management informed through regular reporting, and helps organize the allocation of human and non-human resources.

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    Management accounting techniques like cost-volume-profit analysis, standard costing, budgetary control, capital budgeting, and funds flow analysis assist management in making correct decisions. Management accounting helps management control organizational performance by comparing actual performance to operating plans, standards, and budgets, reporting deviations so corrective measures can be taken. It also coordinates operations, keeps management informed through regular reporting, and helps organize the allocation of human and non-human resources.

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    32 views4 pages

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    ritu paudel
    Management accounting techniques like cost-volume-profit analysis, standard costing, budgetary control, capital budgeting, and funds flow analysis assist management in making correct decisions. Management accounting helps management control organizational performance by comparing actual performance to operating plans, standards, and budgets, reporting deviations so corrective measures can be taken. It also coordinates operations, keeps management informed through regular reporting, and helps organize the allocation of human and non-human resources.

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    of 4

    Decision making is defined as the selection of a course of action from among

    alternatives. It helps the management in decision-making. It uses accounting


    data to solve various management problems.

    Management accounting techniques like cost-volume-profit analysis, standard


    costing, budgetary control, capital budgeting, funds flow analysis, etc. Assist
    the management in arriving at the correct decision.

    4. Motivating
    Motivation means individuals need, desires, and concepts that cause him
    or her to act in a particular manner. Delegation serves as a motivation
    device because it increases the job satisfaction of employees and encourages
    them to look forward.

    By setting goals, planning the best and economic courses of action, and also
    by measuring the performances of the employees, it tries to increase their
    efficiency and, ultimately, motivate the organization as a whole.

    5. Controlling
    Management accounting helps management in controlling the
    performance of the organization. Actual performance is compared with
    operating plans, standards, and budgets, and deviations are reported to the
    management so that corrective measures may be taken.

    6. Coordinating Operations
    It helps the management in controlling the performance of the organization.

    Actual performance is compared with operating plans, standards, and


    budgets, and deviations are reported to the management so that corrective
    measures may be taken.

    7. Reporting
    One of the primary objectives of management accounting is to keep the
    management fully informed about the latest positions of the concern. The
    facilitates management to take proper and timely decisions.

    The object of management accounting is to provide data. It presents the


    different alternative plans before the management in a comparative manner.
    The performance of various departments is also regularly communicated to
    the top management.

    8. Help in Organizing
    Organizing is the process of allocating and arranging human and nonhuman
    resources so that plans can be carried out successfully.

    Tools or Techniques of Management


    Accounting
    Management Accountant applies many of the financial and cost accounting
    systems, as techniques, to assist the management. Management accounting is
    concerned with accounting information that is useful to management.
    Management accounting, like accounting, as an accounting service to
    management through its .various functions, has to employ several tools,
    techniques, and methods. Now one technique can satisfy managerial needs.

    These are placed here in brief to have some idea about those.

    1. Financial Planning
    A business requires finance. Financial planning involves determining both
    long-term and short-term financing objectives of the firm. Every firm has to
    decide on the sources of raising funds.

    The funds can be raised either through the issue of share capital or through
    raising loans. Again a decision is to be taken about the type of capital, equity
    share capital, or preference share capital.
    When it decides to raise funds through loans, management is to decide the
    extent of borrowing, long-term, or short term. All these decisions are
    important for financing planning.

    2. Budgetary Control
    There are a number of the device which help in controlling. The most widely
    used device for management control is “Budget.”

    Budgetary control is a system that resorts to budget as a means of planning


    and controlling and coordinating different types of activities, like the
    production and distribution of goods and services as designed.

    3. Marginal Costing
    Marginal costing is helpful for the measurement of profitability of different
    lines of production. This technique helps in identifying the nature of costs like
    marginal costs (variable) and fixed costs.

    This is a method of costing which is concerned with changes in costs resulting


    from changes in the volume of production.

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