Describe the nature and purpose of management accounting system.?

List the benefits of a management accounting system and state the problems inherent in quantifying the benefits.
I will also want to prepare a report for management on a management accounting system for a firm that has not used such a system before and high light the benefits of such a system to the firm whose senior staff have found it more difficult in the last few years to control the firm because of expansion and reliance on annual accounts for management decisions.

If you start a business, and you do not have a good understanding of accounting, or hire a person who has a good understanding, then soon you will no longer be in business, buecause being able to do accounting properly is one of the foundations of managing any business.

Now there are an infinity of computer software products to help handle the accounting, but there is also an infinity of bugs and problems in some of the software, so if it is operated by someone who does not understand accounting, then soon the business will no longer be in business.

So hopefully I have explained that the nature and purpose of management accounting is to stay in business, and further to do a good job managing the business.

This is in the same way that if you want to get your products to market, you need to use a vehicle, or use a delivery service. If you try to hand carry the product for hundreds of miles without a vehicle, then soon you will not be in business any more.

A firm that has not used a management accounting system before is a fictiious entity in this day and age. It may be an example in a text book that was written 200 years ago

There may be some aspects of the business that are not properly accounted for. For example, a place might do an annual physical inventory, but not keep track of what they have or need between the physicals.

There's a trade off here. Keeping track of your inventory involves some expense, but it can mean less money tied up in extra stuff you do not need, but you keep extra because you never know what you will need.