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Nature (Characteristics) of Management Accounting The following features of Management Accounting will indicate its nature: 1. Provides accounting information: Management accounting is based on acc ! Ounting information. It involves presentation of information ina way suitable to the mana gsement. 2. Decision making: The main objective of management accounting is to provide necessary _ information to top management for taking various decisions. “3. Studies cause and effect relationship: Management accounting analyses the cause and | effect relationship and the facts and figures shown in the financial statements. |f there is a loss, the reasons for the loss are investigated. If there is a profit, the factors affecting __ the profit are analysed. =o = 4. Uses special techniques and concepts: Management accounting uses special techniques and concepts to make accounting data more useful and helpful to the management. Important techniques are standard costing, budgetary control, ratio analysis, responsibility accounting etc. ie | = | [Se Quantitative and qualitative information: Management accounting deals with quantitative as well as qualitative information. — : 6. Multi-disciplinary: Management accounting is a combination of several disciplines such ___as financial accounting, cost accounting, statistics, operation reaearch, economics etc. 7. Accounting for future: Management accounting provides information to management for planning the future Operations. It is the accounting for future. 7 8. Management-oriented: Management accounting is an accounting for the use of == Management. = ) | 9. Increases efficiency: Management accounting enables the management to select that ___ alternative which is more profitable. In this way, it increases the efficiency of the business. 
