Overview of Management Accounting and Functions

Management accounting

The process of identifying, measuring, analyzing, interpreting, and communicating information in pursuit of an organization's goals.

Planning

The step that involves mapping out exactly how to achieve a particular goal, such as improving company sales.

Organizing

The process of arranging a team and materials according to a plan, including assigning work and granting authority.

Directing / Leading

The activity that involves motivating, communicating, guiding, and encouraging team members to achieve goals.

Controlling / Evaluating

The continuous process of checking results against goals and taking corrective actions to ensure plans remain on track.

Financial Accounting

Focus on external reporting for decision making of those outside the organization.

Cost Accounting

Serves as the database for both management and financial accounting by providing information relating to cost of acquiring and utilizing resources.