Management accounting is concerned with the provision and use of accounting information to managers within an organization, to facilitate their decision making and management control functions.
See Introduction to Accounting for how it compares to financial accounting.
Activities
- Explaining production and non-production costs and how they are reported in the financial statements.
- Computing the cost of providing a service or manufacturing a product.
- Determining the behavior of costs and expenses as activity levels change.
- Analyzing cost-volume-profit relationships within a company.
- Assisting management in profit planning and budgeting.
- Providing a basis for controlling costs and expenses by comparing actual results with planned objectives and standard costs.
- Accumulating and presenting relevant data for management decision making.