CategoryHierarchies.com

Management Accounting refers to the process of generating financial and non-financial information within an organization, with the purpose of assisting managers in decision making and performance evaluation. It encompasses various techniques such as budgeting, forecasting, cost accounting, and variance analysis, which are applied to internal data for planning, controlling and monitoring business activities. The focus is on providing relevant, timely and accurate information to support managerial decision-making, rather than complying with external financial reporting requirements. As a result, management accounting information tends to be more detailed, flexible and forward-looking compared to financial accounting information. It helps managers evaluate the efficiency and effectiveness of various business operations, identify opportunities for improvement, and allocate resources in an optimal manner.