INTRODUCTION

Grubnic and Birchall, 2014). Therefore, management accounting is based on the costing principles. Management accounting reports are for the internal assessment of an organization. These reports usually consist of details about the cash, sales revenues as well as organization`s accounts payable and receivables (Bebbington, Unerman, and O`Dwyer, 2014). The present report is going to discuss various useful aspects of management accounting along with their applications. Along with that different types of costing methods specifically absorption and marginal costing will be discussed in detail. The present report effectively addresses the importance of management accounting in the companies. The various uses and applications of the management accounting has been analyzed. Also necessary examples have been cited for the purpose of establishing the relevance of the different aspects used in management accounting. Moreover the explanation of how management accounting can be used to improve the cash flows and financial returns of the business.