What is Managerial Accounting?

Managerial accounting focuses on what is happening inside an agency. It also involves reports on managers and different units inside an agency. It also focuses on decisions made within a company that can affect the future of the company. It is a tool that is not shared with the outside.

Managerial Accounting

Managerial accounting involves providing information to people within an agency that control the daily operations. It supplies the information that helps keep the agency running smoothly. It mostly involves decisions that affect the future. Managerial accounting is also known as cost accounting.

It involves all types of reports that range from a manager's performance to a business unit's performance. It compares those reports to plans and goals that were set. The reports also offer updates on sales and orders received.

Managerial accounting emphasis is on decisions that affect the company's future. Any items that relate to decision making is highly emphasized. It is oriented around managers, so it must convey understanding of the managers do.