In the realm of management accounting and budgeting, financial statements serve as the cornerstone for planning, controlling, and decision-making processes. These statements provide historical data and deliver insights that empower managers to develop budgets, set targets, monitor performance, and make informed strategic decisions.
This article explores the application of financial statements in the following areas:
- Budget preparation and forecasting
- Performance Evaluation and Variance Analysis
- Cost management and control
- Capital budget and investment decisions
- Decision making and Strategic planning