Types of Management Accounting Information Homework Help
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What is management accounting information?
Limited to internal managers and decision makers of the company, management accounting information provides financial data related to a manager’s operations to make the business sound and profitable. The financial ratios, budget forecasts, variance analysis etc. are the different forms of management accounting information. In this article for Types of management accounting information homework help we discuss the various classifications.
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Types of management accounting information
Our Types of management accounting information homework help article writers compile the following classifications.
1. Forecast: a forecast is a strategic planning done in business looking at the current scenario of market and the product. Future operations can be planned for further development in business. Trend analysis is a method that provides such predictions.
2. Budgeting: a model of future revenue figures that is retrieved from the forecast is called as budgeting. In these Types of management accounting information homework help article, the budget processing is kept after the forecast because forecast is a pre requisite. The budget is responsible for the allotment of capital to generate revenue.
3. Variance analysis and cost accounting: the actual realized expense is compared with the budgeted expense to find out the variance and this analysis is called as variance analysis. Man hours, machine hours, raw materials, production duration etc. can be a few terms related to this method.
4. Ratio analysis: a monthly or quarterly ratio analysis is performed and as our Types of management accounting information homework help article writers suggest, it demonstrates the company’s liquidity along with solvency.
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