Define Management Accounting. What are the objectives of Management Accounting?
“Management Accounting is concerned with accounting information that is useful to management”
“Management Accounting is the presentation of accounting information in such a way as to assist management in the creation of policy and in the day to day operation of an undertaking” – AACP.
1) To assist the management in promoting efficiency ie service to customer, investors and employees. 2) To prepare budgets covering all functions of business (ie production, sales, research and finance) 3) To analyze monetary and non-monetary transaction.
4) To compare the actual performance with plan of identifying deviation and this causes.