Question

What are the characteristics of managerial accounting

Answer 1

Answer:- The followings are the features or characteristics of Management Accounting:-

1. Selective nature of information should be gathered from financial accounting system. The reason is that all the financial accounting information are not necessary to management. In other words can say, it adopts a selective technique.

2. Management accounting provides only information but no decision, i.e.,it can recommend but cannot prescribe.

3. Management accounting puts special emphasis on causes and results.

4. The rules of management accounting are not of a certain nature as in financial accounting.

5. Management Accounting deals with the forecasts about the future. It helps the management to take decisions as well as to draw plans for future courses of action.