4. It only provides required data and information to the
management, not the decision. It is up to the
management that how they utilize the available data
and information to resolving the business problems
through taking effective decisions.
Provides Data, Not the Decision:
5. It is also a potent characteristic of this accounting
system. Here selective means, in management
accounting a management accountant is only
collect those data and information from a variety
of alternatives which may create more benefits
and easiness to the management in decision
making. Hence, it is selective in nature.
6. Management Accounting is always assist organization in
achieving its predetermined goals. Because it provides
detailed information in regarding the weakness and the
strength of organization in the form of report, on the
basis of that any organization can eliminate recognized
weakness (business problems) and may achieve its goal
easily.
7. Management Accounting is an accounting
system which is directly related to future
course of events. It means by preparing
this account any organization can
forecast its future on the basis available
information in relating the past events
(Historical data).
Related to Future:
9. Use of Special Techniques:
Management Accounting uses special tools or techniques
(like standard costing, budgetary control, control
accounting, marginal costing etc) for composing the
accounting information and data more accurate and
relevant. So that management can easily make their
decisions. The type of technique to be applied will be
determined according to the situation and necessity