Management accounting: Management accounting is a field of accounting that analysis and provides cost information to the internal management for the purpose of planning, organizing, directing, controlling, and decision making. The main aim is to help management in its functions of planning, directing, controlling and areas of specialization included within the admit of management accounting. It measures the real performance in assessment with the budgets and helps the management in such a method that the latter can maximize the rate of return on capital employed. It facilitates coordination between different departments and helps in attaining the objectives of the business as a whole.
According to the Institute of Chartered Accountants in England and Wales, “Management accounting is that form of accounting which enables a business to be conducted more efficiently.”
According to R. N. Anthony, “Management accounting is concerned with accounting information that is useful to management.”