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a) Organization Manual: An appropriate organization manual should be prepaid and adopted. The manual defines and confine explicitly the scope of authority of each executive in the organization. This prevents overlapping of function, powers and responsibilities. It also depicts the line of communication.
b) Preparing Forms and Returns: The second step in installing management accounting system will be the designing and preparing of various forms and returns required for collection and presentation of information for management needs.
c) Requisite Staffing: The requisite staff should be recruited for making this system effective. The objectives are clear to everyone associated with this system.
d) Classifying accounts and integrating the system: The accounts are classified to facilitate collection and analysis of data. The financial and cost accounting system should be integrated.
e) Introducing standard costing techniques: The technique of standard costing are introduced for setting up standards and recording the performance so that reasons for variations are ascertained and corrective measures are taken in time.
f) Setting up budgetary control system: Budgetary control system should be introduced to plan the activities of various departments.
g) Setting up operational research techniques: The business is operating under changing economic, political, and social environment. Everyday a new challenge is faced. The operational research techniques will be essential to cope with the need.
Lellah answered the question on November 8, 2021 at 13:45
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