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Management accounting is a branch of accounting which enables the managers to make their decisions. Management Accounting, also referred as managerial accounting, refers to the maintenance and reporting of information which provide basis for the managers in their decision decision making and controlling functions. The sole purpose of management accounting is to keep track of the activities going on in a company and prepare reports which better equip the controlling and decision making functions.

In contrast to financial accounting, it need not to follow any accounting or reporting standards or provisions as it is used by the internal stakeholders of an organisation. It is generally a confidential information as compared to financial accounting which is more publicly disclosed and available. The focus of management accounting is on the future (forward looking), while the focus of financial accounting is on the historical information reporting.

Cost accounting is a branch of management accounting as it falls under the broad area of management accounting. Management accounting covers various concepts as listed below (the list is not exhaustive):

  • Cost Accounting
  • Throughput Accounting
  • Lean Accounting
  • Resource Consumption Accounting
  • Transfer Pricing

Management accounting is widely used by large corporations as it becomes much more difficult to keep track of things in large organizations. The scope scale and methodology of its usage differs from one organization to other organization drastically. However, a general phenomena is that the scale of the usage of management accounting increases with the size of the organization. If you need management accounting assignment help then contact us at the finance assignment help site.

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