Plan your future business activities
Management accounting gives a company both financial and non-financial information about the long-term production and investment plans, resource allocation, cost planning and performance evaluation.
Management accounting integrates the company’s business planning, decision making and control information necessary for the identification, measurement, collection, analysis and interpretation.
Management Accounting aims to help managers to make better decisions. For good decision-making it is very important to consider a variety of activities and opportunities to make informed choices between them. Management accounting function is to support the business activities of planning, co-ordination of activities between departments, performance evaluation and control. The most central areas of management accounting are an internal cost accounting system, planning and reporting.
Management accounting system must be set up individually for each company, keeping in mind the specific business characteristics, field of activity specificity, information management, and the problems that wait for the resolution.
Financial management consists of market, operational and financial risk assessment. Market risks are based on the demand/supply and price/competition intercourse and marketing. Operational risks base on production and manufacturing inefficiencies and inflexibility. Financial risks can occur in investing, capital structure and capital costs. Financial management also includes budgeting within different time horizon.
Managerial Accounting provides managers with necessary information.