The Purpose and Characteristics of Management Accounting : A Review

Abstract

Accounting for management, which is often referred to as managerial accounting, may be defined as the process of providing financial information and resources to managers for the goal of decision making. Accounting for management is also known as accounting for management. Accounting for management is also sometimes referred to as managerial accounting. The one and only distinction between management accounting and financial accounting is that management accounting is used only by the internal team of the company, whilst financial accounting is utilised by external parties. This is the only difference between the two types of accounting. Invoices and financial balance statements are sent to the management team of the company as part of the process that is carried out by the finance administration. This process involves the exchange of financial information and reports with the management team of the company. “The use of statistical data for the purpose of arriving at judgments that are more informed and precise is the objective of management accounting. The ultimate goal of management accounting is to exercise control over the operations of an organisation as well as its development. Financial accounting is all about recording and presenting information with the goal of giving value to the many various stakeholder groups that a company has.