key term - Managerial accounting

Definition

Managerial accounting is the process of identifying, measuring, analyzing, and communicating financial information to managers for the purpose of achieving organizational goals. It provides detailed financial and non-financial information that helps in making strategic decisions, planning, and controlling business operations.

Related terms

Cost Accounting: A method that aims to capture a company's total cost of production by assessing the variable costs of each step of production as well as fixed costs.

Budgeting:

The process of creating a plan to spend your money, which allows businesses to determine in advance whether they have enough money to perform their planned activities.

Financial Reporting:

The communication of financial information, such as balance sheets and income statements, which is used by investors, creditors, and others to make decisions about providing resources to the organization