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.

- 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.