Adequate Technical Skills are necessary inputs to a management accountant when he is involved as a part of Finance Team in negotiations with suppliers and customers. This is more relevant in organisations with advanced technolog y projects and products . Comparison ,often , becomes difficult among the suppliers when concept of equivalence is brought in against the original specs . Also quality of the material or component some times can be proved only in process and not at the time of procurement. Supplier selection at the tech bid evaluation stage unless properly done , would result in higher procurement costs and customer rejections . This may invite an audit comment of proprietary nature.It may be noted that Commercial ( Financial) Evaluation comes only later after Technical evaluation .
This is to highlight the technical connect required on the part of a Cost and Management Accountant