Managerial accounting involves identifying, measuring, analyzing, interpreting, and communicating key financial data to the managers of a business so they can better achieve the company's goals by making informed decisions. Cost accounting falls under the heading of managerial accounting.
Managerial accounting is different than financial accounting. Managerial accounting information is intended to assist managers within the company make well informed decisions, whereas financial accounting is aimed at providing financial information to parties outside the organization such as government agencies and potential investors.
Most importantly, the accounting data can be presented to meet the needs of various departments within a company. For example, the advertising and marketing department will need data that is different than what the human resources department may need.
Nationwide Accounting Services