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Management accounting is a kind of process which is used by the manager in order to identify and interpret the information. Through this, firm will be able to make the effective decisions that will be beneficial in achieving the financial goals (Parker, 2012). Accountants prepare a report on timely manner so that day to day operations can be accomplished in more effective manner. The present report is based on Rolls-Royce holdings which perform their operations in manufacturing sector. In this context, report explains the steps which are necessary in order to prepare the master budget. Further, it focuses on some side effects that are arise due to imposition of budget.
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