Overview

In the modern world, accounting is considered as a business language and a basis for decision-making. The traditional accounting work of transaction processing and reporting are taken over by computers.

Financial Accounting does not provide information as a guide to more efficient conduct of the business. Management needs much more detailed information than the financial accounts disclose. Managerial Accounting helps Management in planning and controlling the resources of the business, and is considered as an integral part of the strategy process and Management Information System. Management Accounting analysis data to provide information as a basis for managerial actions such as pricing the product, introduction of new products, sales mix decision, selection of new territories, discontinuation of products, maximization of plant capacity, utilization of other resources and contract manufacturing / marketing options.

Decision Makers often use the management accounting information to develop sound business plans: the more important the decision, the greater the need for relevant information. Therefore it is imperative to understand concepts of managerial accounting in today's highly competitive business environment by all senior level executives.