Why has the role of management accounting expanded?
Management Accounting is the focus of the internal working of the business. This focuses on the costs of items to produce, budgets, and capital expenditure decisions. There is no external reporting requirement for managerial accounting, but the information is presented to management to help make effective decisions for the business.
Answer and Explanation:
Management Accounting has expanded because business needs have expanded over the course of time. At first, management accounting was focused on a particular subset of accounting. However, in the current day, leaders are looking for more and more information from their managerial accounting counterparts to make effective decisions for the business. Thus, as this need has expanded, so has its role.
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Learn more about this topic:
from Business Management: Help & ReviewChapter 9 / Lesson 1