The challenges of management accounting often involve collecting, recording, and reporting

financial information from multiple departments or divisions. The cost allocation methods
require information about direct materials, production labor and manufacturing overheads.
This information is required by multiple production departments. The management
accountant reviews this information to ensure that production costs are allocated only to
goods and services. Including non-production costs distort the cost of individual products.

Furthermore, the challenge of management accountant is the reliability of the information

such as management accounting techniques often emphasize the timeliness of information to
allow business owners to make decisions. For example, we can determine this year’s sales
and check the result with near-absolute certainty end of the year to get the most accurate
figure. The timeliness of information is more important for us to make a decision that we are
planning. Besides, we should evaluate how important the accuracy of the information is
before relying on management accounting information.

The next challenge of the management accountant is follow the GAAP Compliance. The
management accounting techniques is that many of these techniques do not conform to
generally accepted accounting standards or GAAP. For example, activity-based costing can
provide decision makers with more accurate costing information in another way of allocating
costs to products. However, this method is not compliant with GAAP because it does not
allocate all manufacturing costs to the product. For small business owners, this can become
expensive after using this GAAP compliance. Before implementing management accounting
technology, we should ensure that the benefits of the technology outweigh the costs of
multiple systems. If this is not the case, it may not be worth the time and money.

Moreover, the challenge of management accountant is check the adaptability of the

procedures. Although there are some guidelines for management accounting procedures,
these techniques can still fit the business details. This may be an advantage of management
accounting, but it is also a disadvantage. This is because management accounting is very
flexible, it is difficult to compare results between companies, especially if internally applied
management accounting techniques are inconsistent. For example, we can do a report that
should be tailored to our business. We should ensure that the comparing of the company
performance with other company or industry metrics and do the conclusion.