Scope of Management Accounting Posted by birendra kunwar on 4:20 AM

The scope of management accounting is very wide and broad based. It includes all information which is provided to the management for financial analysis and interpretation of the business operation . The following fields of activities are included in the scope of this subject.

1) Financial Accounting : Financial accounting provides historical information which is very useful for future planning and financial forecasting. Designing of a proper financial accounting system is a must for obtaining full control and coordination of operation of the business.

2) Cost accounting : It provides various techniques of costing standard costing , differential and time control , budgetary control and variances analysis etc.

3) Internal financial control : Management accounting includes the internal control method like internal audit, efficient office management etc.

4) Interpretation : Management accounting is closely related to the interpretation of financial data to the management and advising them on decision making.