is concerned with the provisionsand use of accountinginformation to managers withinorganizations, to provide them with the basis to make informedbusiness decisions that will allow them to be better equipped intheir management and control functions.
usually confidential and used by management, instead of publicly reported;
forward-looking, instead of historical;
pragmatically computed using extensivemanagementinformation systemsand internal controls, instead of complying with accounting standards.This is because of the different emphasis: managementaccounting information is used within an organization,typically for decision-making.
According to theChartered Institute of Management Accountants(CIMA), Management Accounting is "theprocess of identification, measurement, accumulation,analysis, preparation, interpretation and communication of information used by management to plan, evaluate andcontrol within an entity and to assure appropriate use of andaccountability for its Resource (economics) resources.Management accounting also comprises the preparation of financial reports for non-management groups such asshareholders, creditors, regulatory agencies and taxauthorities" (CIMA Official Terminology).