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Create Value through Management Accounting


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Create Value through Management Accounting

... Chapter 1:Create Value through Management Accounting Role of Accounting Accounting is a language, which communicates financial information to people who have an interest in an organistion and or have a stake in the organization: * Shareholders and potential investors: Shareholders require information on the value of their investment and the income, which is derived from the shareholding. * Employees: Employees require information on the ability of the firm to meet wage demands and avoid redundancies * Creditors: Creditors and providers of loan capital require information relating to the financial position of the company to assure that the company is in a position to meet its obligations. * Customers: Customers require information relating to the financial position, capabilities of the company in terms of its position in the industry, technology, supply chain management and other capabilities so that they can be reassured that the company will support them with uninterrupted supply of services or products. * Suppliers: Suppliers require information relating

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