Managerial Accounting

Definition of Managerial Accounting as it relates to Business, Accounting Principles, Investment Analysis

Managerial accounting, also known as management accounting, is a branch of accounting concerned with providing financial and non-financial information to internal managers within an organization for decision making purposes. This type of accounting focuses on the needs of managers rather than external stakeholders such as investors or regulatory bodies. Managerial accountants use various techniques such as budgeting, cost analysis, and performance measurement to evaluate and improve organizational performance. They also provide financial statements that are tailored to meet the specific information requirements of different departments or business units within an organization. Overall, managerial accounting plays a crucial role in helping managers make informed decisions that can drive business success.

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