The contemporary organization has been reducing the management layers and increases the information sharing between the departments so that inter-department personnel and the management skills are used to their maximum. The importance of the Management Accounting Information in the organization has increased due to following factors:

a) More inter-dependence of the departments: the departments are inter-dependent, so the information of various departments to have proper coordination between them is very important. The over-lapping between the departments towards the resources will increases the costs and disturbs the production and the customer services. So, the management should have to develop the Information system which controls the data of various departments, so that management can take decisions for company benefits.

b) Advanced manufacturing technology: Due to evolution of advance and complex manufacturing technology, there exists a greater need for the information for the each part of the manufacturing process so that production goes smooth. The assessment of the operational data and their disposal to the management to take appropriate decision has increase value of management accounting.

c) Globalization and competition: Due to competition, the prices of the raw-materials and the products are so dynamically variable around the globe that collection and keeping information for the availability of the material and best price provider has gained importance. The collection of data on the demand of the products in various parts of the world and various factors that affects the prices of the products through Management Accounting information, from different sources, has become important.

d) Ever changing needs of customer: The company’s products now-a-days require frequent changes as per the requirements of the customers, so the management have to keep the customers amended needs and their costs factors data with them duly updated so that products do not lag behind in competition. The customer are the driving hands of the organization and management have to take a good care of them, so that company gets good demand for its products from round the world.