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May 10, 2023

    It is generated on a weekly or monthly basis for company`s internal stakeholders like chief executive officers (CEO) and department managers unlike financial accounting which helps external stakeholders determine the financial condition the company by annual reports. The reports of management accounting include sales revenue generated, cash availability, accounts payable states, raw materials, inventory, outstanding debts, etc.

    The following assignment is based on Pavestone, one of the leading manufacturing companies. It was founded in 1980 and undertakes manufacturing of segmental concrete products to industrial, retail, contractor, residential and commercial businesses. The assessment includes requirements of different types of management accounting systems, different methods used for management accounting reporting, advantages and disadvantages of planning tools for budgetary controls and how organisations are adapting management accounting systems to respond to their financial problems.

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