1.1 The Role Of Management accounting in relation to a company

In any kind of organizations or companies, management accounting support the stack holder's fully considered decision making after the professionals collect, process and communicate the information in the processes of planning, controlling and evaluating business strategies and processes of the company (Anonimous, (n.d.)).

In principles, every business organization must comply with four principles of managerial accounting. The principles are credibility, value, influence and relevance.  (Cogneesol, 2020). Based on the AICPA (American institute of public accountants) and CIMA (Chartered Institute Of Management Accountants) the practical application of the above four principles are significantly played by three primary aspects. The first aspect is the ability to find what is required by the business in the process to get the success in a long time. The second one is that relevancy of strategies and products that people use should be concerning with the practical use of the principles. The third one is that efficiency assessment of the operational management accounting and identification of the improvement scope influenced by competencies of all involved professionals in the office, performance of the platforms,  fundamentals or key areas of performances,                    

There are 13 specific management accounting activities available in the sources (Cogneesol, 2020). The activities include managing cost, external reporting, thinking of financial strategy, internal controlling, estimating investment cost, managing budgets, regulating the product price policies, administrating the project, complying with the regulations, managing the precious assets, thinking about the management of risk, planning the tax,  and forecasting the liquidity and cash . (Codjia, 2019) also mentioned some fundamentally essential management accounting activities. Some of them are budgeting, in house reporting of financial status of the company, analysis of all cost, and procedure, system and internal control monitoring.     

 

 

 

 

 

References

Anonimous. (n.d.). The Role of Management Accounting in the Organization. http://www.swlearning.com › expanded › exp_01 DOC.

Cogneesol. (2020, February 26). Four managerial accounting principles every business must comply with. Cogneesol Blog. https://www.cogneesol.com/blog/four-managerial-accounting-principles-to-comply-with/.

Codjia, M. (2019, February 11). The importance of budgetary control in management accounting. Bizfluent. https://bizfluent.com/facts-6750338-importance-budgetary-control-management-accounting.html.