Question

Management Accounting primarily deals with:

• A. Preparing tax returns
• B. Providing accounting information to people within the organization for planning, controlling, and decision-making
• C. External auditing
• D. Recording transactions only

Answer 1

Answer:

B. Providing accounting information to people within the organization for planning, controlling, and decision-making

MANAGEMENT ACCOUNTING:

• Management accounting deals with the provision of necessary accounting information to people within the organisation to enable them in decision making, planning and controlling business operations.

• Management Accounting draws the relevant information mainly from financial accounting and cost accounting.

• Uses various techniques like ratio analysis, budgetary analysis, fund flow statement, cash flow statement etc.

• Generate relevant information like sales forecast, purchase requirements, manpower needs