“Management accounting deals only with costs.” Do you agree? Explain
“Management accounting deals only with costs.” This statement is misleading at best,
and wrong at worst. Management accounting measures, analyzes, and reports financial and nonfinancial
information that helps managers define the organization’s goals, and make decisions to
fulfill them. Management accounting also analyzes revenues from products and customers in
order to assess product and customer profitability. Therefore, while management accounting
does use cost information, it is only a part of the organization’s information recorded and
analyzed by management accountants.
“Management accounting deals only with costs.” Do you agree? Explain“Management accounting deals only with costs.” This statement is misleading at best,and wrong at worst. Management accounting measures, analyzes, and reports financial and nonfinancialinformation that helps managers define the organization’s goals, and make decisions tofulfill them. Management accounting also analyzes revenues from products and customers inorder to assess product and customer profitability. Therefore, while management accountingdoes use cost information, it is only a part of the organization’s information recorded andanalyzed by management accountants.
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