The Purpose Of Managerial Accounting

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Managerial accounting is helpful to the managers in of identifying, measuring, analyzing, interpreting and communicating information for the pursuit of organization’s goals. It contrast with financial accounting in that later is aimed to provide information to external user of accounting information while managerial accounting it’s aimed at helping the mangers to make decision in the organization. Purpose of managerial accounting The purpose of management accounting in the organization is to support competitive decision making by gathering, processing, and reporting information that assists the management planning, controlling, and evaluating business processes and company strategy. Example of information communicated by managerial accounting is cost of the organizations products and services, this helps the manager for instance to set the selling prices, inventory valuation as well as income valuation. Nature of managerial accounting It has its own special characteristics that make it distinct from other areas of accounting. Some of the essential characteristics possessed by managerial accounting include; i. Use of special techniques like standard costing, budgetary control, marginal costing among others. These techniques are used to compose accounting information and data more accurately and make it relevant to help the managers make decision more easily and quickly. ii. It’s mainly for internal use unlike others accounting like financial that provides information for
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