Which of the following are tools of management accounting
A) Decision accounting
B) Standard costing
C) Budgetary control
D) Human Resources Accounting
Options
A) A, B and D
B) A, C and D
C) A, B and C
D) A, B , C, D
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The Correct Answer for the given question is option C) A, B and C
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Answer Explanation for Question: Which of the following are tools of management accounting
Tools of Management Accounting
Management accounting also known as managerial accounting is a method of making financial information and resources available to managers. Accounting for management is used by only the internal team of an organization, and that is the only difference between financial accounting and management accounting.
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Decision Accounting
An account that helps managers make decisions is referred to as a decision account. It is vital for the quality of such decision accounts that only those expenditures, revenues and volumes are included that can be directly impacted by the decision being taken. Thus, it is important to identify additional costs that are incurred, as well as savings resulting from a given decision. It is equally important to determine how much additional revenue is gained or lost as a result of the same decision.
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Standard Costing
Standard costing is a method of estimating expenses associated with a production process. This type of cost accounting is used by manufacturers, for example, to plan their expenses for the upcoming year, such as direct materials, direct labor, and overhead. Typically, standard costs are predetermined costs. They are based on previous experience, and they reflect the best judgement of management. It is determined for a level of efficiency of operation that is typical for a given product, service, process, or operation.
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Budgetary Control
The term ‘budgetary control’ refers to the process of managing income and expenditures. It means comparing actual income or expenditures to planned income or expenditures to determine which actions must be taken. The process of budgetary control includes; Preparation of various budgets, Continuous comparison of actual performance with budgetary performance, and Revision of budgets in the light of changed circumstances.
Lastly,
I hope after going through this post you might have clearly understood the Question: Which of the following are tools of Management Accounting
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MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
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