What is Mgt Accounting?
Management accounting is a field of accounting that analyzes and provides cost information to the internal management for the purposes of planning, controlling and decision making. Management accounting combines accounting, finance and management with the leading edge techniques needed to drive successful businesses. 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. 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 main objectives of Management Accounting are to help management by providing information that used by management to plan, evaluate, and control.
Management accountants work for public companies, private businesses and government agencies. They may also be called cost accountants, managerial accountants, industrial accountants, private accountants or corporate accountants, but all perform similar functions within a company. Indeed, preparing data for use within a company is one of the features that distinguishes a management accountant's job from other types of accounting jobs, such as public accounting. Management accountants are risk managers, budgeters, planners, strategists and decision makers. They do the work that helps the...
Please join StudyMode to read the full document