what is the importance of mangerial accounting?

Answer 1

Managerial Accounting is the process of identifying, measuring, analyzing, interpreting, and communicating information for the pursuit of an organization's goals. This is also known as "cost accounting." The key difference between managerial and financial accounting is that managerial accounting information is aimed at helping managers within the organization make decisions. In contrast, financial accounting is aimed at providing information to parties outside the organization.

According to the Chartered Institute of Management Accountants (CIMA), Management Accounting is "the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information used by management to plan, evaluate and control within an entity and to assure appropriate use of and accountability for its resources. Management accounting also comprises the preparation of financial reports for non management groups such as shareholders, creditors, regulatory agencies and tax authorities" (CIMA Official Terminology)

Aims:
1. Formulating strategies;
2. Planning and constructing business activities;
3. Making decisions;
4. Optimal use of resources;
5. Supporting financial reports preparation; and
6. Safeguarding assets.

Answer 2

B is the most accurate of your choices. I do not consider variable cost to be accurate. It is a commodity cost. The reality is that the cost of the gasoline is related to several factors. * The price of gasoline fluctuates in the current market place. * The amount of gasoline that is consumed, is related to the work that needs to be done with which machines * Some machines function more efficiently after they have warmed up, than when motor just starting, or starting and stopping. * There us also the gasoline consumed by whatever vehicle transported equipment to the work site * Depending on how it is stored, transported, there may be some spillage. * As a business, it may be practical to buy the gasoline at lower prices than the standard consumer Inversely means OPPOSITE It varies PROPORTIONALLY, not inversely, with the equipment usage, and pretty directly (not exactly, but pretty close) to numbers of hours the equipment needs to be operated.