Managerial Accounting Practices

Managerial Accounting Practices

Introduction

Effective management accounting is considered a vital element of organizational success. Managers produce various reports based on management accounting tools for making informed decision about the operations of the Company. The importance of management accounting is highly recognized, because of its use in long term strategic planning and the effective functioning of an organizational management information system.

Line Managers frequently require the need to project future revenues, expenses and profits which helps them map and monitor operations. To be consistent, managers use the Cost Volume Profit analysis (CVP) to recognize the level of work required to avoid ...