PART A:

Management accounting is a different type of accounting from financial accounting which is more concerned with providing financial information that helps managerial decisions. It goes beyond the day-to-day tallying of finances, and focuses more on forecasting and longer term business decisions.

Following are the factors that increased the need for management accounting information in contemporary organiastions:

1. Controlling: It is another factor that increases the need for management accounting as it evaluates the work of all company units and makes conclusions related to the financial performance. In this way, it gives the reasons for both the loss and the profit generated by your departments. In such circumstances, it is much easier for senior executives to reduce operational costs.

2. To improve Core competency: Management accounting need has also ariesd due to need of better core competencies internally in any organisation and to give competition to other firms in the market.

3. Changing management style: In today's era, management style is changing to make performance and policies globally competent as this determines the nature of managerial demand for information and lead to change in need of management accounting information.

4. Launching new products andReviewing products : To launch new products, management accounting is even more important as it starts supporting from initial planning right through to execution and gives a detailed breakdown of production capabilities with accurate picture of the market as well. To review current product range, management accountancy will provide all the financial and business-crucial statistics to decide exactly which products are profitable and which aren’t, and how to remedy that.

PART B:

Accounting is very important function for any organisation as it tells about the performance results. It measures the performance on the basis of its parameters and tells about an. organisation's financial performance. It shows the profit or loss earned by an organisation and by finding the reasons behind it by analysing financial statements. As this function is very wide in large organistaions, therefore it is divided into broad categories i.e Financial Accounting and Management Accounting whose roles can be explained as:

ROLE OF FINANCIAL ACCOUNITNG:

Financial Accounting plays an important role in any organisation as:

1. It presents the financial performance of a company to the users and attracts prospective investor.

2. It shows net profit or net loss earned by a company which every lender, supplier or investor wants to know.

3. It helps in taking decisions relating to cost control, fresh issue of capital, funding through varios sources etc.

4. It tells about the impact of any policy implemented in the business.

5. It helps in taking decision regarding continuance and discontinuance of any product.

ROLE OF MANAGEMNT ACCOUNITNG:

Management Accounting also plays an important and useful role in any organisation that can be explained as:

1. It helps in taking short-term and long term planning decisions and strategy formulation.

2. It provides necessary information to management regarding optimum product mix, make-or-buy, discontinuing a product,capital budgeting, investment appraisal, project financing etc.

3. It helps in tracking internal cost for any business process that helps an organization in accounting various cost.

4. It is concerned with future plans and focuses on budget formulation.

5. It communicates the financial information with other managers very well that helps in achieving organisational goals.

DIFFERRENCE BETWEEN FINANCIAL ACCOUNITNG & MANAGEMNT ACCOUNITNG
S.NO.	FINANCIAL ACCOUNITNG	MANAGEMNT ACCOUNITNG
1	It focuses on preparing financial statements and shows financial performance.	It focuses on measuring and communicating financial performance with other department managers.
2	It is mandatory for every organisation.	It is not mandatory yet preferrable to opt Management Accounting.
3	It is for external and internal users.	It is majorly for internal users.
4	It is bound by IFRS, GAAP etc.	It is not bound by any law or act.