Management Accounting is the provision and use of accounting information to the managers of an organization. This provides them with essential information to make informed business decisions.
Management Accounting information is confidential and is not publicly reported. It is used by the management only. This information is about the future and is not about the historical data.
Management Accounting has a very important role to play in a business or industry. It is used for
- Formulation of strategies.
- Planning of business activities
- Helps in decision making
- Ensures optimum use of resources
- Safeguard assets
- Supports the function that is related with preparation of financial reports.