How does accounting support management decisions?

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<p>Accounting in management uses financial information to support organizational decision-making functions and planning activities as well as control processes. The system comprises budgeting procedures but also incorporates cost analysis and financial reporting and performance evaluation methods. Management accounting enables companies to monitor their business profitability through expense control and resource distribution performance assessment. Managers who study financial trend patterns secure growth possibilities and risk evaluations to produce strategic business decisions. The main purpose of management accounting differs from financial accounting since it operates internally to help organizations within their operations. A company achieves both financial stability and long-term success through proper accounting practices in management.</p>

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