The Present complex industrial world, management accounting has become an integral part of management, Management accountant guides and advises management at every step. Management accounting not only Increase Efficiency of the management but it also increases the efficiency of the employees. The main Advantage of management accounting is given below:
1. Determine of Aim:
Management accounting on the basis of the information available determines its goal and tries to find out the route through which it can reach the goal.
2. Helps in the Preparation of Plan:
Present age is the age of planning. That producer is considered as most successful producer who produces articles according to the plan and needs of the consumers. Before taking any plan the manager must study and analyze the present and future of the business.
3. Better Services to Customers:
The cost control device is management accounting enables the reduction in prices of the Product. All employees in the concern are made cost Conious. The quality of the Product become good because quality standards ate pre-determined. The Customers are supplied goods and goods quality at reasonable price.
4. Easy to take judgment:
Before taking any plan or to determine policy. There are several plans or policies before the management on the basis of the study he decides which plan and policy was to be adapted so that it may be more useful and helpful.
5. Measurements of performance:
The techniques of budgetary control standard costing enables the measurement of performance In standard costing, standards are determined 1st and then actual cost of compared with standard cost. It enables the management to find out deviations between standard cost and actual cost. The performance will be good it actual cost does not exceed the standard cost. Budgetary control system too helps in measuring efficiency of all employees.
6. Its Increase Efficiency of the business:
Management accounting increases efficiency of the business concern. The targets of different departments of the enterprise are determined in advance and the achievement of these goals is taken as a tool for measuring their efficiency.
7. Its Provide effective management control:
The Tools and techniques of the management accounting are helpful to the management in planning controlling and coordinating activities of the business, the getting of standard and assessing actual performance regularly enables the management to have ‘management by exception’. Everybody assesses his own work and immediate actions are taken as a tool for measuring their efficiency.
8. Maximum profits of can be obtained:
In this process every possible effort are made to control unnecessary expenses. The incapability or inefficiency is removed. New systems or techniques are found out to achieve the goal, so that there may be maximum profits out if the capital invested in the Business.