Management accounting. Measurement of profitability by class of business

Document description

For the purpose of this paper we regard management accounting as being concerned with revealing the 'true' financial performance of a given class of business over some chosen period of time. As the discussion develops it will become apparent that the concept of the 'true' performance is somewhat nebulous\; and subject to many qualifications. However, despite the limitations, we seek through management accounting to provide some more or less accurate indication of the underlying financial performance of each class.