Computer management accounting

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The idea that everyone needs to be checked up on leads naturally to the concept of a hierarchy of supervision within an organization, in which those who do the checking are in turn checked up on by other people. The number of levels of this hierarchy depends upon the span of control.


The activities that are managed by organisations are becoming more complex and sophisticated, and so too is the way that these activities are configured for productive purposes. This means that the various component
Management accounting is concerned with the provision of information to management, to assist with planning, decision-making and control within the business. Because planning and decision-making are inevitably directed to the future, management accounting often involves making future projections, usually called budgets. Important applications of this are capital budgeting, which deals with the appraisal of investments, and cash budgeting, which deals with the projection of future cash inflows and outflows, and the consequent financial requirements of the entity.
Management accounting is also concerned with controlling and appraising the outcome of past plans, for example by analysing costs, and with assessing the economic performance of particular divisions or activities of the entity. Because the demand for management accounting information varies according to the activities, size and management structure of the entity, and because the supply of such information is not subject to statutory regulation or audit, there is a much greater variety both of techniques and of practice in management accounting than in financial accounting. ...
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