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1.Planning:
This is a basic function of management by means of which the manager decides.
a)What goals are to be accomplished.
b)How they are going to be accomplished. Planning gives the manager a warning of possible future crises, and therefore the manager avoids making bad decisions.
Role of the Management Accountant
The Management Accountant helps to formulate future plans by providing information to assist in deciding what products, to sell in what markets, at what price and in evaluating proposals for capital expenditure. The Management Accountant also helps in preparation of the budget by providing data on past performance, establishing budget produce and budget timetables. The Management Accountant is referred to as a budgetman.
2.Controlling:
It involves a comparison of actual performance with the planned performance so that deviation from the planned can be identified and corrective action taken. It can therefore be defined as a process of comparing events to conform to plans.
Role of the Management Accountant
The Management Accountant helps in the control process by producing performance reports that compare the actual outcome within the planned outcome for each responsibility centre (segment within organization whose manager holds delegating authority and is responsible for the segment’s performance). For each segment the manager provides a performance report.
The Management Accountant also draws the manager’s attention to those specific activities that do not conform to the plan. This is referred to as “management by exception”.
3.Organizing:
This is process of establishing the framework within which the required activities are to be performed and the designation of who should perform these activities. Involves coming up with departments, sections, branches etc.
Role of the Management Accountant
The Management accountant provides information on the performance of each of these segments.
4.Motivation:
Involves influencing human behaviour, so that the participants identified with the objectives of the organizations can make decisions that are in harmony with those objectives.
Role of the Management Accountant
Budget and management reports produced by management accountant help in motivation.
5.Communication
To communicate is to make known, impart or transmit information.
Role of the Management Accountant
Management accountant aids in the communication process by installing and maintaining effective communication and reporting system. The management accountant comes up with management accounting information systems eg.
Budgetary system.
Titany answered the question on October 8, 2021 at 09:14