Corporate Printing Solutions

Definition of Management Accounting easily explained

Management accounting or management accounting is the reporting process with timely and accurate financial information required by business managers to make management decisions on a daily or short term.

Unlike financial accounting that generates annual reports, management accounting produces monthly or weekly reports.

These reports tend to show how much cash available, the revenue generated by sales, the amount of back orders, status of accounts payable and accounts receivable, debts, inventory of raw materials and may also include trend graphs and other statistics. All this is known as management accounting.

Managerial Accounting Objective

One can say that the main objective of management accounting is to provide financial information to senior executives of a company so they can make good decisions and sound for the fulfillment of goals.

Possibility Related Posts:

• The Importance of Accounting in a Business
  The importance of accounting in a company or business is to provide information on a company's financial results or business and its position. This information is usually shared with shareholders. Ac...
• Uses of Accounting in a Business
  The main use of accounting is to record all financial transactions of a business (expenses, purchases, investments) to prepare financial statements and present such information in an orderly manner to...