Management accounting helps the to level management by providing factual information obtained by cost and financial accounting. It is helpful for formulating policies, planning, making decisions and controlling the organizational activities.The main objectives or roles of management accounting are as follows.
1. Planning And Formulation Of Policies.
Future plans and policies are formulated on the basis of past financial data and information. Management accounting use historical data for planning and policy formulation purpose.
2. Controlling Performance.
Better controlling ensures effective utilization of resources and minimize wastage. So, management accounting helps to boost employees' performance with proper control.
3. Interpretation Of Financial Information.
It helps the management to interpret various financial information provided by cost accounting and financial accounting.
4. Better Coordination
Another key role of management accounting is that it helps the management to maintain better coordination among employees and operations in the organization.
5. Better Organizing
Better organizing is another notable objective of management accounting. It helps proper organizing at the workplace that ensures better and smooth operation.
6. Evaluation Of Efficiency And Effectiveness
It compares actual performance with budgeted or standard performance. It helps to evaluate the efficiency and effectiveness of organizational performance..
7. Motivating Employees
Motivation is essential to boost employee performance which helps to increase productivity of the firm. So, management accounting practices reward system, promotion, transfer etc. to inspire employees in the organization.
8. Solution Of Business Problems.
Management accounting takes various actions to solve business problems so business activities can be carried out easily without any disturbance.
1. Planning And Formulation Of Policies.
Future plans and policies are formulated on the basis of past financial data and information. Management accounting use historical data for planning and policy formulation purpose.
2. Controlling Performance.
Better controlling ensures effective utilization of resources and minimize wastage. So, management accounting helps to boost employees' performance with proper control.
3. Interpretation Of Financial Information.
It helps the management to interpret various financial information provided by cost accounting and financial accounting.
4. Better Coordination
Another key role of management accounting is that it helps the management to maintain better coordination among employees and operations in the organization.
5. Better Organizing
Better organizing is another notable objective of management accounting. It helps proper organizing at the workplace that ensures better and smooth operation.
6. Evaluation Of Efficiency And Effectiveness
It compares actual performance with budgeted or standard performance. It helps to evaluate the efficiency and effectiveness of organizational performance..
7. Motivating Employees
Motivation is essential to boost employee performance which helps to increase productivity of the firm. So, management accounting practices reward system, promotion, transfer etc. to inspire employees in the organization.
8. Solution Of Business Problems.
Management accounting takes various actions to solve business problems so business activities can be carried out easily without any disturbance.