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Management accounting knowledge and experience can be obtained from varied fields and functions within an organization, such as information management, treasury, efficiency auditing, marketing, valuation, pricing, and logistics. The ways and means to tackle the causes are analysed and targets are achieved. Management Accounting aims at aiding the Management in organising through establishment of cost centres, profit centres, responsibility centres, Budget preparation etc. Financial accounting has various established principles and rules in preparing the financial accounts. “Management accounting is the presentation of accounting information in such a way as to assist management in the creation of policy and in the day-to-day operations of an undertaking”. The functions like budgeting, auditing, O & M, credit control etc., are all placed under Chief Management Accountant. Management accounting provides capital budgeting techniques for financial planning. Generally, standard costing is used along with budgetary control for effective control of operations. Advantages/ Merits/ Uses 9. Standard costs, Budgets, cost control techniques, etc., contribute towards elimination of wastages, production of defectives etc. Management accounting modifies and rearranges data as per the requirements for decision making through various techniques. ANSWER: d) In planning, direction and control, ANSWER: a) Ango-American Council on Productivity. Installation of Management Accounting System 7. These techniques lay-down targets, compare actuals will standards and budgets to evaluate the performance and control the deviations. Though it is considered as an indispensable tool for Managerial decision making, its recent origin and several external factors limit its effectiveness. Nature of Management Accounting 3. This becomes possible with the help of management accounting techniques of standard costing and budgetary control. It includes delegation of authority and fixing responsibility. From this point of view, Management Accounting may be regarded as an Art. The Tools used by Management accounting usually make the data supplied to Management accurate and reliable. Installation of Management Accounting involves huge expenditure because of the elaborate organisation needed and the large number of changes in procedures, forms and rules. The following are the main characteristics of management accounting: The main emphasis of management accounting is to provide financial information to management. So, the accuracy .and reliability of the conclusions derived by Management Accounting is limited to the reliability of its sources of data, so, it suffers from several of the limitations of Finance Accounts and cost Accounts.

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