Planning
Planning is the fundamental function of the management by means of which the managers decide:
- What goals are to be accomplished
- How they will be accomplished.
- Planning provides the manager a warning of likely future crisis and therefore they avoid the need to make unplanned decisions.
- The management accountant aids to formulate future plans by providing information to assist in deciding what product to sell, in what market and at what prices and in evaluating proposals for capital expenditure.
- In the budgeting procedure the management accountant provides data on past performance, establishes budget procedures and budget time tables.