how does managements explanation enhance the usefulness of financial accounting information?
Answers
Answer:
Constraint Analysis
Managerial accountants help determine where bottlenecks occur and calculate the impact of these constraints on revenue, profit, and cash flow. Managers can then use this information to implement changes and improve efficiencies in the production or sales process.
Explanation:
Accounting gives management information regarding the financial position of the business, such as; profit and loss, cost and earnings, liabilities and assets, etc. ... Accounting prevents the misuse of assets, increases production and profit, controls costs and helps increase the efficiency of the overall management.Managerial accounting helps managers make operational decisions–intended to help increase the company's operational efficiency–while also helps in making long-term investment decisions.