Increase Efficiency:
- Management accounting improves the efficiency of the operation of the firm. Everything is finished in management accounting with the scientific system for assessing and comparing the performance. The company will take promotional decisions on this basis. Other employees will also be motivated. Thus, management accounting increases efficiency.
Maximizing the Profitability:
- Using of management accounting's budgetary control and capital budgeting tool, the company can succeed to reduce both operating and capital expenditures. After that, the company can lower its price and then the company will get super-profits.
Simplify the Financial Statements:
- For use different managerial decisions, management accountant will provide deep technical reports and simple explanation. The company's management officers will understand what is in financial statement and how will they use this for the company's progress.
Control of Business's Cash Flow:
- Management accounting has important advantages because it can be used to control of business's cash flow. The cash in hand is better than in fixed properties if have an emergency to pay a company loan or debt. Thus, the management accountant will deeply study where is money coming from and where is it going. To check on abuse of money will sure to control of businesses cash flow.
Business-critical Decisions:
- To take business-critical decisions, management accounting will become more powerful. Global management accountants are coming to join on one plate-form to taking all business crucial decisions.
Flexibility and freedom:
- The management accounting system is of flexible nature. These reports no require to be made every year, monthly, or weekly. Thus, the accountant has enough time to prepare the perfect report
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