WHITE PAPER MANAGERIAL ACCOUNTING WIKIPEDIA

 Managerial accounting, also known as management accounting, is a field of accounting that provides financial and non-financial information to managers and other internal users within an organization. It is a decision-making tool that helps managers plan, control, and evaluate the activities and performance of the organization.

WHITE PAPER MANAGERIAL ACCOUNTING WIKIPEDIA

Unlike financial accounting, which focuses on providing information to external stakeholders such as investors and creditors, managerial accounting is concerned with providing information to internal users for the purpose of decision-making and operational control. This information can include financial data, such as budgeting, forecasting, and cost analysis, as well as non-financial data, such as performance indicators and key performance metrics.

One of the main tools used in managerial accounting is budgeting, which involves setting financial and operational goals for the organization and allocating resources to achieve those goals. This includes creating a budget plan, monitoring actual performance against the budget, and taking corrective action when necessary. Budgeting helps managers to plan for the future and make informed decisions about how to allocate resources to achieve the organization's objectives.

Another key aspect of managerial accounting is cost analysis, which involves identifying and measuring the costs of producing goods or providing services. This includes both direct costs, such as materials and labor, and indirect costs, such as overhead expenses. Cost analysis helps managers to understand the costs associated with different activities and to make informed decisions about how to allocate resources to maximize profitability.

In addition to financial data, managerial accounting also includes non-financial performance measures and key performance indicators (KPIs). These measures provide insight into how well the organization is performing in terms of meeting its strategic objectives and how it compares to industry benchmarks. Examples of non-financial performance measures might include customer satisfaction, employee engagement, and product quality.

Managerial accounting also plays a role in decision-making and problem-solving within the organization. It provides managers with the information they need to make informed decisions about how to allocate resources and to identify and solve problems that may be impacting the organization's performance.

Overall, managerial accounting is an important tool for managing and improving the performance of an organization. It provides managers with the financial and non-financial information they need to make informed decisions, control operations, and achieve the organization's objectives.