What do you mean by management accounting?

May 29th, 2015
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Murray State University
Course: general
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Management 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.

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What do you mean by management accounting?Management 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"The American Institute of Certified Public Accountants (AICPA) states that management accounting as practice extends to the following three areas:Strategic Managementadvancing the role of the management accountant as a strategic partner in the organization.Performance Managementdeveloping the practice of business decision-making and managing the performance of the organization.Risk Managementcontributing to frameworks and practices for identifying, measuring, managing and reporting risks to the achievement of the objectives of the organization.The Institute of Certified Management Accountants (ICMA), state "A manageme

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