managerial accounting

Management accounting The field of study in accounting devoted to information needed by a company's management (as opposed to third-party financial accounting). Topics covered in management accounting include cost behavior, product costing to manufacturers, budgeting, amounts needed for decision making, transfer pricing, capital budgeting, etc.

Managerial accounting focuses on providing financial and non-financial information to management for planning, controlling operations, and decision-making.

- Used in planning, organizing, and controlling business operations.
- Used when setting KPIs, policies, procedures, and improving processes.

- Example: Management applies **managerial accounting** when designing policies and monitoring performance against targets.

- Why it matters: Improves execution, accountability, and decision speed while reducing operational waste.