Management accounting

Management accounting is concerned with providing information and 1 to managers to help them plan, evaluate and control activities, in order to achieve an organization’s 2 . Whereas financial accounting is concerned with reporting on the past financial performance of an organization, management accounting is essentially concerned with improving its future performance. In order to understand the 3 and principles of management accounting it is necessary first to have some 4 of what managers do! This, in turn, requires an understanding of the organizations in which managers work – and of the external environment in which these organizations exist and operate.