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

Answer:

Role of management accounting :

1. provide internal information on operations

2. help in decision making

Utilization of management accounting principles

1. make or buy decisions

2. continuing or discontinuing of operations

Useful managerial Accounting Activities

1. planning

2. deciding on the alternative causes of action

Explanation:

Role of Management Accounting is to provide managers with information related to their operations.This includes the costs and revenue incurred, the deviations from the planned costs and revenue and profit targets.

This information would help to control costs and revenues or make certain decisions of continuing or discontinuing operating of a product or segment.

Thus managerial accounting activities that are useful are planning, deciding on the alternative causes of action, implementation, monitoring and control