Management Accounting

Definition of Management Accounting:

According to the Chartered Institution of Management Accountants (CIMA), Management Accounting is the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication
of information used by management to plan, evalute and control within an entity and to assure appropriate use of and accountability for its resources. Management Accounting also comprises the preparation of financial reports for non-management groups such as shareholders, creditors, regulatory agencies and tax authorities.

The Association of Certified and Corporate Accountants (ACCA) has defined Management Accounting as " The application of accounting and statistical techniques to the specified purpose of producing and interpreting information designed to assist Management in its functions of promoting maximum efficiency and envisaging formulating and coordinating their execution."