Managerial Accounting Homework Help


    Managerial Accounting

    Managerial accounting is the process of analyzing, identifying, measuring, interpreting and communicating the information for the pursuit of an organization’s goals. It is also known as the cost accounting or Management accounting. It is concerned with the provisions and the use of accounting information to the managers within the organizations to provide them with the basis to make informed the business decisions that will allow them to be better equipped in their management and control functions. Managerial accounting is the integral part of Management process.


    The major difference between the managerial and financial accounting is that the managerial accounting information is aimed at helping the managers within the organisation to make decisions. Whereas the financial accounting aims at providing the information to parties outside the organisation.


    Following are the features of the managerial accounting information: 

    • It is primarily forward looking instead of the historical data.
    • The model is based with a degree of abstraction to support the decision making generically instead of the case based.
    • It is designed and intended for the use by managers within the organization instead of being intended for use by the shareholders and public regulators
    • It is usually confidential and used by the management instead of publicly reported.
    • It is computed by the reference to the needs of managers using the Management Information Systems instead of the reference to general financial accounting standards. 

    The managerial accountants add value to an organization by providing information, assistance in directing and controlling the activities, by motivating the managers and the employees towards the organization’s goals and measuring the performance and assessing the organization’s competitive position.


    Managerial accounting is used by businesses, government, the not-for-profit organizations and individuals

    • Businesses: It can be categorized by the sector of economy in which they operate. Every different sector has different structure for the business purpose. For example: Manufacturing firms turn the raw material into the finished goods and others. Also, the business can be categorized by their size. 
    • The non profit organizations includes the charitable organizations, health care providers and most private the institutions of higher education.
    • The government bodies include the Federal, central, state and local governments, and various government agencies such as the post office and others.


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