Question

Why managemnt accounting is called essentil tool of managmt?

Answer 1

BECAUSE.....

Management accounting is the process of preparing management reports and accounts that provide accurate and timely financial and statistical information to managers to make short-term and long-term decisions. It identifies, measures, analyzes, interprets, and communicates information to enable an organization to pursue its goals.

Management accounting differs from financial accounting. While financial accounting provides information to people inside and, more importantly, people outside the organization, management accounting is mostly aimed at aiding managers inside the organization with decision making.