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Management Accounting - Nepalese Perspective


Submitted By ghimire
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Management Accounting
April 10, 2013
Management Accounting
Nepalese Perspective
Management accounting is the method of measuring the performance of the organization through both quantitative and non-quantitative approach. Financial accounting and cost accounting both give the quantitative measures based upon which decisions are made but it will not be correct to make decisions based solely upon numbers thus only considering financial terms is considered the old method of decision making in management.
Decisions made at both the operational level or management level are not always the outcome of financial numbers. Most of the decisions have other factors which make greater impact than the numbers given by the financial accounting.
At present the tendency to measure performance on the overall basis rather than just looking at the size of the profit made by the company has tremendously increased the importance of management accounting worldwide including Nepal. The concept of cash flow management and profitability are central to both financial accounting and management accounting. The financial constrains of any organization defines its objectives and its future course, the impact of which needs to be considered by the managers for decision making in steps.
Nepalese Perspective
Cash Flow Management The most important function for any manager is to maintain the cash flow of the organization. The main cause of business failure in Nepal like elsewhere is not the unprofitability rather it is the inability of the managers to keep the incoming cash flow intact to support the resource which will give its return only in future. The outlay as capital expenditure is doesn’t matches its return which happens later in future but it requires cash to perform at present which causes the imbalance of cash and the company goes down.
Implementation of New Business Concept Management

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