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There are two managerial accounting principles- Principle of Causality (need for cause and effect insights) and the Principle of Analogy (application of causal insights by management in their activities). These two vital principles serve the managerial accounting community and its customers- the management of businesses.
The above principles are included in the Managerial Costing Conceptual Framework (MCCF), along with theories and constraints to help govern the managerial accounting practice.
The key objective of managerial accounting is to help the management maximise profits or minimise losses. Apart from that, the key objectives of management accounting may be summarised under-
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