As the Indian economy grows, more and more companies will compete amongst themselves and internationally; success will come to those who are able to take intelligent decisions within the time frame. In order to take appropriate decisions management has to be armed with knowledge of the company's internal working; this is where management accounting comes in picture. It can be defined as the "branch of accounting which deals with presenting and providing accounting information to the management in such a systematic way that it can its managerial functions of planning, controlling and decision making in an effective and efficient manner." (Bhattacharyya, 2011) The crux of the definition is that management accounting is a decision making support system.
The aim of this report is to study the practical application of management accounting. For the purpose of research a private organisation has been selected and via interview information has been collected on the company's practices.
Hi-Tech Butterfly Valves India Private Limited was established in the year 1998 and within fourteen years of operation it has become one of the leading manufacturers of Valves. It is located in Pithampur, the industrial hub o f Madhya Pradesh.The management of the company believes that quality and constant innovation are the keys to success. Hi-Tech supplies in some major industries like Birla Copper, Essar Steel, Tata Steel, Tata Chemicals and Reliance Industries etc. Mr. Om Sharde is the head of the finance department; he was the point of contact for this report.
Elementarily, costing can be defined as the technique or process of deducing costs. Ascertaining the costs of various inputs is one of the most important duties of a financial manager. Cost accounting is an integral part of management accounting since it is a...