Management Accounting
Management Accounting provides information for the following jobs of an organisation:
- Formulation of Policies
- Planning the Activities – From Strategic to Operational
- Controlling the Activities
- Performance Appraisal
- Decision Making – Choosing between Alternatives
Developments in Management Accounting
- Development of more descriptive models
- Implications of Just in Time and Material Resource Planning
- Usage of Operation Research and Computer models for short run decisions
- Extension of Management Accounting system to
- Strategic Management, Profit Impact of Marketing Strategy, Activity based Management, Backflush Accounting, Throughput Accounting, Target Costing, Life cycle costing, Cost reduction and investment appraisal – Sensitivity analysis.
Investment in Information Technology
- Cost reduction, man hour savings and inventory reduction
- Improved control over various area of business
- Better Customer Service
- Increase in Capacity
- Strategic Positioning, improved competitive positions and enhanced market share
- Better training of personnel, improved morale, motivation, skills acquisition, team working and development of key personnel.
