Explain the role of Management Accounting in Planning and control in a bank

Q. Explain the role of Management Accounting in Planning and control in a bank.

A basic objective of managerial accounting is to improve the effectiveness of both the management planning and control functions. Plans should be developed on the same information base as the mechanisms of control. Planning depends on the same reporting and control mechanisms that make central oversight possible and decentralized management feasible. Building the mechanism of control on one data base (financial accounting) and the planning process on another (program analysis) places too great a burden on the management system as the intermediary. Managerial accounting involves in the formulation of financial estimates of future performance (the planning and budgeting processes) and, subsequently, the analysis of actual performance in relation to those estimates (program evaluation and control).