BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Once at the end of accounting period
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As frequently as information needed for decision making purposes
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Detailed explanation-1: -Specific to certain decision points like inventory valuation, cost control, cost accounting, etc. Most companies have a statutory filing of Quarterly, half-yearly and annual reports.
Detailed explanation-2: -Management accounting reports are usually prepared on a weekly or monthly basis by managers or business analysts. Financial accounting reports are filed annually.
Detailed explanation-3: -Monthly management reports are the financial statements and business performance reports prepared by internal stakeholders or external experts on a monthly basis.
Detailed explanation-4: -The accounting system which provides relevant information to the managers to make policies, plans and strategies for running the business effectively is known as Management Accounting. Financial statements are prepared for a fixed period, i.e. one year. Management Reports are prepared whenever needed.
Detailed explanation-5: -Management accounting helps managers strategize, course correct and make informed decisions based on the analysis and interpretation of the financial data related to the internal operations of the company. Management accounting is a virtual tool to help the managers of an organization steer it towards their goals.