What are merits and demerits of management accounting?

Answer 1

Merits of Management Accounting

Management Accounting helps in Budgeting by classifying and calculating costs and estimating the costs and revenues for the future. Management Accounting plays a major role in the internal decision making for the organization. Management Accountants also find ways to manage the organization's resources in a better way by doing cost savings. Management Accounting makes it possible for the management to understand the needs of the organization and those of the different departments.

Using Management Accounting is very important because it helps in managing the internal operations of an organization. Just as Financial accounting is vital for external investors and creditors, Management Accounting is important for the internal managers.

Answer 2

What are the merits and demerits of management accounting