DEFINITION OF MANAGEMENT ACCOUNTING

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Managerial accounting is the process of identifying. measuring, analyzing. interpreting and communicating information for the pursuit of an organization's goals. It identifies the information needs of management and develops the systems required to meet those needs, such as planning, forecasting, budgeting, cost and revenue management, and performance measurement.

The Institute of Chartered Accountants of England and Wales defines, "Management Accounting is that form of accounting which enables a business to be conducted more efficiently."

The Institute of Cost and Management Accountants London has defined, "Management Accounting as, the application of professional knowledge and skill in the preparation of accounting information in such a way as to assist management in the formulation of policies and the planning control of the operation of the undertakings."

Similarly, according to the American Accounting Association, "It includes the methods and concepts necessary for effective planning for choosing among alternative business actions and for control through the evaluation and interpretation of performances

From the above definitions, we can say that the part of accounting that provides information to managers for use in planning, controlling operations, and decision-making is called management accounting.

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