Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions.
In contrast to financial accountancy information, management accounting information is:
- primarily forward-looking, instead of historical;
- model based with a degree of abstraction to support decision making generically, instead of case based;
- designed and intended for use by managers within the organization, instead of being intended for use by shareholders, creditors, and public regulators;
- usually confidential and used by management, instead of publicly reported;
- computed by reference to the needs of managers, often using management information systems, instead of by reference to general financial accounting standards.
Read more about Management Accounting: Definition, Traditional Vs. Innovative Practices, Role Within A Corporation, Resources and Continuous Learning, Management Accounting Tasks/ Services Provided, Related Qualifications, Methods
Famous quotes containing the words management and/or accounting:
“This we take it is the grand characteristic of our age. By our skill in Mechanism, it has come to pass, that in the management of external things we excel all other ages; while in whatever respects the pure moral nature, in true dignity of soul and character, we are perhaps inferior to most civilised ages.”
—Thomas Carlyle (1795–1881)
“At the crash of economic collapse of which the rumblings can already be heard, the sleeping soldiers of the proletariat will awake as at the fanfare of the Last Judgment and the corpses of the victims of the struggle will arise and demand an accounting from those who are loaded down with curses.”
—Karl Liebknecht (1871–1919)