Nature of Management Accounting
The purpose of management accounting is to collect and provide accounting, cost accounting, economic and statistical information to the men at various managerial levels in order to assist them with their managerial functions and their evaluations.
In the performance of managerial functions, namely planning, decision-making, and control, it involves the development and application of various techniques of recording, analyzing, interpreting, and presenting financial, costing, and other data.
Management accounting incorporates not only accounting techniques, but also statistical and mathematical ones.
Since management accounting is forward-looking, it should be able to treat economic data and information in a way that will facilitate its use by management.
The following aspects are considered as the nature of management accounting:
