Drawbacks of Management Accounting
Write down the drawbacks of Management Accounting?
Expert
1) Management Accounting is depends on cost and financial accounting, in which past data is employed to make prospect decisions. Therefore, weakness and strength of the managerial decisions are depends on the strength and weakness of the accounting records. 2) Management Accounting is helpful merely to those people who are in the decision making procedure. 3) Tools and methods employed in management accounting only offer information and not ready made decision. Therefore, it is only a supplementary service. 4) In Management Accounting, decision is depends on the manager’s institution as management aspire to avoid lengthy courses of technical decision making. 5) Personal prejudices affect the decisions as the explanation of financial information is based on personal decision of the interpreter.
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