Management accounting

Management accounting is the process of preparing reports about business operations that help managers make short-term and long-term decisions. It helps a business pursue its goals by identifying, measuring, analyzing, interpreting and communicating information to managers. The main functions of management accounting include:
- Helping Forecast the Future
- Helping in Make-or-buy Decisions
- Forecasting Cash Flows
- Helping Understand Performance Variances
- Analyzing the Rate of Return

Role of Management Accounting
Management accounting helps managers within a company make decisions.
Also known as cost accounting, management accounting is the process of identifying, analyzing, interpreting and communicating information to managers to help achieve business goals.
The data collected encompasses all fields of accounting that informs the management of business operations relating to the costs of products or services purchased by the company. Management accountants use budgets to quantify the business’ plan of operations.
Performance reports are used to note the deviation of actual results compared what was budgeted.