management accounting

Popular Terms
The process of preparing management reports and accounts that provide accurate and timely financial and statistical information required by managers to make day-to-day and short-term decisions.

Unlike financial accounting, which produces annual reports mainly for external stakeholders, management accounting generates monthly or weekly reports for an organization's internal audiences such as department managers and the chief executive officer. These reports typically show the amount of available cash, sales revenue generated, amount of orders in hand, state of accounts payable and accounts receivable, outstanding debts, raw material and inventory, and may also include trend charts, variance analysis, and other statistics.

Also called managerial accounting.

Use 'management accounting' in a Sentence

ACME Inc's management accounting identified the failure of the PAX vaccine in the very same week we brought it to market, saving us millions of dollars.
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Our management accounting team was always on call and we could consult with them for any information we needed that day.
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You need to make sure you do everything right when you are preparing your management accounting and show your strengths.
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