Role of Legal Provisions in Management Accounting: Many management decisions depend upon the provisions of various laws and statutory requirements. For example, the decision to make a fresh issue of shares depends upon the permission of controller of capital issues. Similarly, the form of published accounts, the external audit the authority to float loans, the computation and verification of income, filing tax returns, making tax payments for excise, sales, payroll income etc., all depend on various rules and regulations passes from time to time.

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