List of Objectives of Management Accounting
Management accounting can be defined as an accounting under which management uses the accounting information for making future decisions. Here is the list of the objectives of management accounting -
1. Planning: The success of any business depends upon the proper planning. Planning also involves foreseeing the problem of arranging adequate funds or resources to implement the various plans. It can render valuable information as to what should be the cheapest source in terms of cost involved.
2. Organizing: By following various techniques of it, each department of the organization can be examined separately. It helps the management in performing this function by assigning specific responsibilities to different people.
3. Controlling: Management Accounting helps the managements in controlling the performance of the business. The actual results are compared to plan objectives. Budgetary control, cost variance, and interpretation of financial statements are helpful in this direction.
4. Decision making: Decision-making is a very important function of management among all the functions of the management, It can be very helpful in this regard. Under this function, to management finds various alternatives, which should yield maximum profit. Marginal Costing, Break-even analysis etc. can help to the managements in this regard.
5. Time saving: It is concerned with the analysis and interpretation of financial statements. It selects only that information, which is useful to managements and hence save the time of the managements.