Q.41. What is the primary task of Management Accounting? Ans.41.The primary task of management accounting is, therefore, to redesign the entire accounting system so that it may serve the operational needs of the firm. Q.42. What does Management Accounting furnish to the management? Ans.42. Management Accounting furnishes definite accounting information, past, present or future, which may be used as a basis for management action. The financial data are so devised and ____________ developed that they Q.43. become a _________ tool for management decision. Ans.43. Systematically Unique DEFINITIONS OF MANAGEMENT ACCOUNTING The term Accounting” covers all those services by which the “Management accounting department can assist the top management and other departments in the formation of policy, control of execution and appreciation of effectiveness. This definition points out that management is entrusted with the primary task of planning, execution and control of the operating activities of an enterprise. It constantly needs accounting information on which to base its decision. A decision based on data is usually correct and the risk of erring is minimized. Management accounting is concerned with the accumulation, classification and interpretation of information that assists individual executives to fulfil organizational objectives. The Report of the Anglo-American Council of Productivity (1950) has also given a definition of management accounting, which has been widely accepted. According to it, "Management accounting is the presentation of accounting
Q.41. What is the primary task of Management Accounting? Ans.41.The primary task of management accounting is, therefore, to redesign the entire accounting system so that it may serve the operational needs of the firm. Q.42. What does Management Accounting furnish to the management? Ans.42. Management Accounting furnishes definite accounting information, past, present or future, which may be used as a basis for management action. Q.43. The financial data are so devised and ____________ developed that they become a _________ tool for management decision. Ans.43. Systematically Unique DEFINITIONS OF MANAGEMENT ACCOUNTING The term “Management Accounting” covers all those services by which the accounting department can assist the top management and other departments in the formation of policy, control of execution and appreciation of effectiveness. This definition points out that management is entrusted with the primary task of planning, execution and control of the operating activities of an enterprise. It constantly needs accounting information on which to base its decision. A decision based on data is usually correct and the risk of erring is minimized. Management accounting is concerned with the accumulation, classification and interpretation of information that assists individual executives to fulfil organizational objectives. The Report of the Anglo-American Council of Productivity (1950) has also given a definition of management accounting, which has been widely accepted. According to it, "Management accounting is the presentation of accounting
cost_accounting_chapter_1_0.docx