Management accounting is one of the branches of accounting is related with the process of preparation of the accounting reports which is prepared so that the internal management of the company can make a decision regarding the Objectives of the company and determine the policies according to the future trends of the market. Managerial accounting reports are prepared by the accountants of the company by utilising financial statements of the company such as Balance sheet, Statement of profit and loss account and cash flow statement. These reports also consider the future economic and Non-economic activities of the market that will be prevalent in future.
This report is prepared on TSR Pvt. Ltd. and discusses the significance of management accounting and techniques. Various planning tools used in the management accounting process and the use of accounting tools that assists in responding to financial problem.
P1: Define management accounting and various types of management accounting systems
Management accounting is the process of accounting which deals with the preparation of managerial accounting reports so that the internal management of the company can determine the objectives and formulate policies for the company by utilising those reports. Managerial accounting reports make use of the financial statements of the company and also considers the future economic and non economic activities of the market that will be prevalent in future so that the managers can make decision effectively and it does not impact the operations of the company