Management Accounting
MF213A Management Accounting Management Accounting is an important function in the support of decision-making. “Management Accounting is concerned with the provision of information to people within the organisation to help them make better decisions and improve the efficiency and effectiveness of existing operations, whereas financial accounting is concerned with the provision of information to external parties outside the organisation. Thus, management accounting could be called internal accounting and financial accounting could be called external accounting. ... Within today’s working environment management have an increasing amount of decisions to be made which can change or shape the future of their company. While some management decisions obviously require the preparation of unique information. The costing systems, which I am going to discuss within this assignment, attempts to provide useful information for a broad range of frequent management and organisational decisions therefore, the information they provide must be judged on its relevance. “Accounting is a language that communicates economic information to people who have an interest in an organisation – managers, shareholders and potential investors, employees, creditors and the Government. ... As most companies sell more than one product or service, management accounting must often show the effects of decisions on one product on the profit of the whole company.