The role of management accounting in enterprises

The function of management accounting is the concrete embodiment of the basic function of enterprise management, that is, planning and controlling production and business activities. Planning and control are interrelated and cannot be separated. Moreover, the work priorities of various management levels within the enterprise are also different.

By studying the development scale of the enterprise itself and the development of the market and industry, we can find the best investment scale and the best investment entry point for the enterprise, so as to maximize the return on investment and minimize the cost under the existing enterprise development scale and conditions.

Through careful investigation and study of the market, we can plan the optimal production scale and sales scale for enterprises and avoid unnecessary production costs and opportunity costs. At the same time, management accounting can adjust the functions of enterprise products through market research, guide enterprises to highlight the useful functions of products and eliminate useless functions in the production process, and finally achieve the goal of reducing the production cost of products.

The present situation of enterprise management accounting in China

Management accounting plays a very important role in modern enterprise management. After decades of research and application, China has made many positive management achievements, but there are still worrying situations in management accounting in China.

One of the most prominent problems is uneven development. In developed cities and coastal cities in China, management accounting has been rapidly promoted and developed, and its practical role is more prominent. Business managers in big cities and developed areas have a clearer idea of market competition and future development of enterprises.

The comprehensive quality of its managers is also high, so it pays more attention to management accounting. However, for some economically underdeveloped areas, due to the influence of traditional ideas and the constraints of their own quality, managers do not pay much attention to the role of management accounting, and even many managers do not even know what the role of management accounting is.