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Core Function of Managerial Accounting

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Core Function of Managerial Accounting

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  1. The Core Functions of Managerial Accounting

  2. It includes collecting, managing, analyzing and implementing of information to complete the operational and financial activities of business. The data are followed by the Business managers to complete the various actions of cooperates.

  3. Margin Analysis • Identify the amount or cash flow generated by business from specific services or products to analyses it profit margin.

  4. Break Even Analysis • identify the actual price points where the contribution and unit volume of business matches.

  5. Constraints Analysis • It revolves around bottlenecks concept that defines the operational activities which are at maximum level and not hold any additional load.

  6. Target Costing • it supports in new verticals of business by getting rough idea of new designs and comparing them to target cost to forward a report to management

  7. Inventory valuation • It help in calculation of direct costs of specific products, total cost of products and inventory item.

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