INTRODUCTION TO MANAGEMENT ACCOUNTING

Management accounting plays an important role in every organization. It focuses on effective management of resources to improve customer value and shareholder value. Hence, this lesson provides an introduction to management and cost accounting, distinguish between financial and management accounting, role of management accounting in providing information to managers for planning, controlling, performance measurement.

Upon completion this lesson, you should be able to: 

• define management accounting;
• explain primary activity of management accounting;
• distinguish between financial and management accounting
• discuss significant management accounting information for planning, decision making and performance management;
• discuss the factors that have influenced the changes in the competitive environment;