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on Management Accounting - Essay Example
Author : opalberge
Finance & Accounting
Pages 3 (753 words)
Name Professor Course Date Management Accounting Introduction Management accounting concerns the provisional use of accounting data by managers within a Corporation or organization. This information provides managers with the ground for making informed business decisions…
Management accounting has a design and intention, used by the management in the organization. Confidentiality plays an enormous role in management accounting as opposed to financial accounting. The information in management accounting has a computational dimension tailored for the managers; it uses management information systems, as opposed to financial accounting standards. Various concepts of management accounting exist for usage by managers and management teams within organizations and companies (Caplan, p. 156). This information plays a crucial role in decision making processes within the organization and also assists in the formulation of strategies, business activities and enhances the budget making process within the organization. Management accounting involves the process of measurement, identification, analysis, accumulation, interpretation, preparation and communication of information by managers in planning, evaluation and controlling an organization, entity or firm. This process ensures appropriate use and accountability of the entity’s resources. Management accounting could also involve the preparation of fiscal reports for non-management groups within the entity (Caplan, p. 158). This group includes creditors, shareholders, tax authorities and regulatory agencies. ...