1) Planning and policy formulation: planning is one of the primary functions of management. It involves forecasting on the basis of available information.
2) Help in the interpretation process: The main object is to present financial information. The financial information must be presented in easily understandable manner.
3) Helps in decision making: Management accounting makes decision making process more modern and scientific by providing significant information relating to various alternatives.
4) Controlling: The actual results are compared with pre determined objectives. The management is able to control performance of each and every individual with the help of management accounting devices.
5) Reporting: This facilitates management to take proper and timely decisions. It presents the different alternative plans before the management in a comparative manner.
6) Motivating: Delegation increases the job satisfaction of employees and encourages them to look forward. so it serves as a motivational devise.
7) Helps in organizing: “Return on capital employed” is one of the tools if management accounting. All these aspects are helpful in setting up effective and efficient organization.
8) Coordinating operations: It provides tools which are helpful in coordinating the activities of different sections.
Lellah answered the question on November 8, 2021 at 13:05
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