Management accounting (or managerial accounting) is a sub-set of
accounting that is focused on the internal needs of a business. The accounting
information used by managers within organizations, to provide them with
current information to make informed business decisions that will allow
them to be better equipped in their management and control functions.
Unlike financial accountancy information (which, for the most part, is public information), management accounting information is used within an organization and is usually confidential. Contemporary managerial accounting systems are focusing more on the activities that occur at all levels of the organization.
Additional meaning of Management accounting:
In contrast to financial accountancy information, management accounting information is:
- designed and intended for use by managers within the organization,
instead of being intended for use by shareholders, creditors, and public
regulators;
- usually confidential and used by management, instead of publicly reported;
- forward-looking, instead of historical;
- computed by reference to the needs of managers, often using
management information systems, instead of by reference to general
financial accounting standards.