Question

Management Accounting uses data mainly drawn from:

• A. Financial accounting and cost accounting
• B. Marketing research reports
• C. Government reports
• D. External audit reports

Answer 1

Answer:

A. Financial accounting and cost accounting

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