the primary goal of managerial accounting is to provide information to which type of person in company?
The primary goal of managerial accounting is to provide information to internal-decision makers in the company. The financial information is to submit to the manager. Based on that financial data, the managers make essential decisions on operational, sales, purchase, and many other areas, which are the most important for the company and the financial information used for achieving the goal of the company. It is also known as cost. accounting. managerial accounting and management accounting both are same in meaning.
Financial accounts as are useful to creditors, debtors, investors for making the different types of decisions. In comparison, a management account is helpful in only internal management for making decisions.
Financial accounts related to only financial information while on the other hand, the management account include nonfinancial information and also financial information
Mangement accounting benefit’s
The financial, non-financial information provides to the management at a regular interval of time, so this information useful to the management for the planning of many activities of the organization.
The management can make a strategic decision based on data presented to them. Management accounting is useful in making strategic decisions regarding the launching of new products in the market, purchasing raw material, labor, and finally, selling products in the market.
The main benefit of management accounting is that it helps provide crucial financial information to the management, so the internal decision-makers make the necessary decisions for the company, and these decisions prove beneficial to many areas to the company.
Management accounting ‘s Difficulties..
Management accounting limitation is management takes decisions based on historical financial information. So some time decision takes on found historical financial information that leads to a false or wrong decision for the company.
It also happens that establishing the management accounting system requires a considerable investment, so that leads to an increase in the company’s expenses
It may also happen that the financial information submits to the management of the company. The managerial team’s lack of knowledge regarding marketing, economics, and commercial terms can not make adequate decisions for the company, so in that situation, management accounting not good for all companies..
How often should managerial accounting reports be prepared ?
The financial accounting reports must prepared accoding to the rules and regulation of the government but on the other hand managerial accounting reports should prepare according to the requirement and need of the the management of the company. It may prepare weekly,monthly, six month duration,or yearly according to need and requirement of the management of the company.When the management of the company wants to take decision that time management accounting reports should prepare by the company.
Conclusion
The primary goal of managerial accounting is to provide information to manager or internal-decision makers in the company so they take all necessary decisions which are best for the business of company.
