Management accounting provides financial and non-financial information to managers to help them make informed decisions about the business. The main functions of management accounting include:
- Communicating financial information: Management accountants gather and analyze financial data from the business’s financial statements and other sources, and then communicate this information to managers in a way that is easy to understand and use.
- Planning and budgeting: Management accountants help managers develop plans and budgets for the business. This includes setting goals, forecasting future financial performance, and allocating resources.
- Costing: Management accountants track the costs of the business’s products, services, and activities. This information can be used to set prices, make pricing decisions, and control costs.
- Decision-making: Management accountants use financial and non-financial information to help managers make informed decisions about the business. This includes decisions about pricing, products, marketing, and investments.
- Performance evaluation: Management accountants track the performance of the business and identify areas for improvement. This information can be used to set goals, improve efficiency, and make better decisions.