The process of identifying, measuring, analyzing, interpreting, and communicating information for the pursuit of an organization’s goals.
The key difference between managerial and financial accounting is that managerial accounting information is aimed at helping managers within the organization make decisions. In contrast, financial accounting is aimed at providing information to parties outside the organization. This is also known as “cost accounting.” (see also Financial Accounting)
Other Definitions
Managerial Accounting – The branch of accounting that uses both historical and estimated data in providing information that management uses in conducting daily operations in planning future operations, and in developing overall business strategies.(www.crfonline.org/orc/glossary/m.html)
Managerial Accounting (Management Accounting) the gathering and application of information used to plan, make decisions, evaluate performance, and control an organization (Thomson Nelson; Managerial Accounting Glossary)
