Monday, May 21, 2012

Management Accounting

Management Accounting or managerial accounting is the application of accounting information to assist the managers of the entity in making reasonable decisions on achieving the objectives of the entity.

It also refers to reports designed to help the internal users of the entity.

Unlike financial accounting, it does not have principles to follow in preparing reports. The managers are the ones who make rules which they probably think will be the most useful in achieving its objectives.

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