Adavantages of Management Accounting Information

Advantages of focus bill nurture The provision of management accounting information are for the intention of readiness, control and decision reservation which may contribute to the success of an organization. Management accounting is the process of gathering information about economic activity that willing be advantageous for the organization.For the planning of an organization, the charabanc underside use the historical, amaze and future information obtained from management accounting which based on the organizations situation and position in predicting organizations future needs, consideration clearer objective and implementing specific strategies that can bring achievement to the organization. After interpreting relevant management accounting information provided, it will be more cost-efficient for the organization to apply and realize their planning and objective that had been set earlier.For the planning of an organization, the manager can use the historical, presen t and future information obtained from management accounting which based on the organizations situation and position in predicting organizations future needs, setting clearer objective and implementing specific strategies that can bring achievement to the organization. After interpreting relevant management accounting information provided, it will be more efficient for the organization to apply and realize their planning and objective that had been set earlier.Management accounting open to assists the manager in controlling organizations cash arise and improve monetary stability which included the costs and business operational expenses. With the management accounting information obtained, the manager is able to review the cost of economic resources and other business operations. Therefore, the manager is clearer and familiar with the estimation of cost needed to run the business. Manager can analyze the quality of economic resources consumed in producing goods by using the manag ement accounting information.As an example, if the over whole quality of product would not be affected significantly by replacing with cheaper raw material, the manager can change towards a reduction of production costs. Budgeting is considered as major part of management accounting. To create an effective financial plan with lower operational expenses, manager able to analyze necessary and unnecessary business expenses based on the budget plan obtained from management accounting information in the pathway of prudence money for the organization. In ontrast, there is also some limitation of management accounting information which based on financial and cost accounting. The interpretation of financial information ordinarily depends on the interpreters judgments. The accuracy of decision mostly will be affected by their personal bias or prejudices. Manager usually uses management accounting information as a decision-making tool. This is because management accounting information consi sts of specific and accurate details related to different competitors, market and fabrication the organization involved.With the analyzed data such as competitive advantages, consumers demand, potential sales and consumers response to price change, manager is able to make decision among all other business opportunities. In contrary, there are some limitations of the management accounting information. The quality of the information is restricted with the proper understanding and knowledge of the management accountants who provided the information.They may be lack of knowledge in related subject such as Statistic and economics, thus it will lead to inaccurate management accounting information. In conclusion, it is foreseeable that management accounting information is important and can be known as a business tool for the organization although it may has some limitations. But, it can also overcome by applying expertise and professional training for every level of management in the orga nization.Therefore, the information still able to assists in internal operation management of an organization. Furthermore, all decisions of the organization rely heavily management accounting information due to the reason it identifies all the factors that will affect the organization to succeed. ABMC 2023 MANAGEMENT ACCOUNTING FUNDAMENTALS TUTORIAL GROUP 2DAC4 WORD COUNT 2997 NAME STUDENT ID KHOR SEONG SENG 11PBD05485 KHOR PEI CHIEN 11PBD03114 KHOR SHER LEE 11PBD06416 ONG KAR SIN 11PBD03057 YE YUN SHENG 11PBD04700