MANAGERIAL ACCOUNTING

The process of preparing management reports and accounts by identifying, measuring, analyzing, interpreting, and communicating information. The report, which has accurate and timely financial and statistical information, helps managers to to pursue the organization’s goals. It also allows them to be equipped in management and control functions. Normally, the report shows the following: amount of available cash, amount of orders in hand, outstanding debts, raw material and inventory, sales revenue generated, and state of accounts payable and receivable; it may also include trend charts, variance analysis, and other related statistics.

Also known as cost accounting.

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