Normal costing measures do not work where there are bottlenecks.

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Management accounting plays a crucial role in business models that minimize working capital. By closely monitoring inventory levels, cash flow, and accounts receivable, management accountants can identify opportunities to reduce working capital requirements and improve overall efficiency. They can also help companies implement lean manufacturing practices and other strategies designed to increase productivity and reduce waste, further optimizing working capital.

Normal Costing Measures Do Not Work Where There Are Bottlenecks