Management accounting

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 accountinginformation is 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; forward-looking, instead of historical; computed by reference to the needs of managers, often using management information
systems , instead of by reference to general financial accounting standards. Definition According to the Chartered Institute of Management Accountants (CIMA), Management Accounting is "the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information used by management to plan, evaluate and control within an entity and to assure appropriate
use of and accountability for its resources. Management accounting also comprises the preparation of financial reports for non-management groups such as shareholders, creditors, regulatory agencies and tax authorities" (CIMA Official Terminology). The American Institute of Certified Public Accountants (AICPA) states that management accounting as practice extends to the following three areas: Strategic Management— Advancing the role of the management accountant as a strategic partner in the organization. Performance Management—
Developing the practice of business decision-making and managing the performance of the organization.
Risk Management— Contributing to frameworks and practices for identifying, measuring, managing and reporting risks to the achievement of the objectives of the organization

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