Management Accounting and Internal Reporting

Management accounting is what makes accounting decision-useful.

Typical questions answered by management accounting include:

• What profit do I make with products A,B and C?
• Where do I lose money? Why?
• Should I invest in resource A or B?
• Where will our equity ratio be in 2 years?
• Are my suppliers too expensive?
• Do I charge the right prices?
• Should I buy or should I make?

Bookkeeping and accounting serve several important purposes such as documentation, proof, and compliance.

Management accounting provides financial data in a form that matches a manager's decision making requirements.