how does managerial accounting assist managers with their responsibi.pdf

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how does managerial accounting assist managers with their responsibilities to the companies stakeholders Solution Answer Management accounting is that branch of accounting which analysis data provided by financial and cost accounting regarding business costs and operations so as to prepare internal reports and records to help managers’ in decision making process. Stakeholders’ of a company are those parties having interest in business operations, profitability and growth. These are investors, shareholders, employees, government, suppliers, banks and financial institutions and customers. Managerial accounting by providing information to managers assist and facilitate them in taking prudent decisions and managing resources available at company’s disposal with effectiveness. It also considers regular evaluation of company’s operations, so as to take corrective actions on time. All these issues are of utmost importance to meet responsibilities towards stakeholders of the company. For example: Some of the examples depicting fulfilment of manager’s responsibilities for stakeholders’: - Payments to suppliers on time. - Providing appropriate return on investment to investors”. - Timely repayment to creditors. - Constructing secure working environment. -Timely payment of taxes applicable to the government. - Providing safe and defect free products to the customers..

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The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined The globalization of economy, technological advancement, and cowe

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 Financial Accounting and Management accounting are the two branches of accounting.  Financial accounting stresses on giving true and a fair view of the financial position of the company to various parties.  On the contrary, management accounting aims at providing both qualitative and quantitative information to the managers, so as to assist them in decision making and thus maximizing the profit. Financial Accounting is the branch of accounting which keeps track of all the financial information of the entity. Management Accounting is that branch of accounting which records and reports both the financial and nonfinancial information of an entity.

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