Basic of Management Accounting Information

Management accounting as providing both financial information and nonfinancial information. The role of management information as supporting strategic (planning), operational (Operating) and control (performance evaluation) management decision making. In short, management accounting information is pervasive and purposeful. In short, management accounting information is pervasive and purposeful.

Examples of management accounting information include:

• The reported expense of an operating department, such as the assembly department of an automobile plant or an electronics company.
• The costs of producing a product
• The cost of delivering a service
• The cost of performing an activity or business process such as creating a customer invoice
• The costs of serving a customer

Management accounting also produces measures of the economic performance of decentralized operating units, such as:

• Business units
• Divisions
• Departments

These measures help senior managers assess the performance of the company's decentralized units. Management accounting information is a key source of information for decision making, improvement, and control in organizations. Effective management accounting systems can create considerable value to today's organizations by providing timely and accurate information about the activities required for their success.

Basic of Management Accounting Information