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Management accounting




Accounting Management, i.e. the accounting dedicated to information for internal purposes, has been one of the instruments most used as an information system for management, since it allows to know the outcome of the company and each of its areas, Contributing decisively to the decision-making process, taking into account its three basic purposes:

Valuation of inventories
Planning and Control
Decision making
It is necessary to emphasize that the evolution of the Management Accounting has been very linked to the development of the organizations, which is evident given its objective of providing timely information to the management, therefore it has to respond to the needs of the same from The requirements of the environment. Under current conditions Management Accounting remains important, it can be pointed out that its role is more necessary when organizational complexity is greater and there is more competitive pressure and management control is fundamental. However, the development of Management Accounting Systems in the last decades has not responded to the magnitude of changes in the business environment, Becoming obsolete the so-called "Traditional Systems" that were elaborated under other conditions and for other purposes. Hence, different authors coincide in pointing out limitations in these systems, which can be summarized in the following:

Short-term operational guidance
Excessive level of data aggregation
Based on a very hierarchical company structure
The fundamental emphasis on cost control
Aimed at facilitating uncomplicated decisions.

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