Management accounting

Management accounting helps managers understand what happened in the past and why, as well as control the present and plan the future. Management accounting ensures information which is the basis for making managerial decisions, and it is aimed at the present and the future. It can be defined as a kind of upgrade of existing financial accounting, whose data it uses, along with all other information that does not have to be documented. A legislator does not prescribe an obligation of running a management accounting in a company, and so it is not formalized. Obtained information is not available to outside customers, and only the managers use it.

Considering that financial accounting most often does not provide sufficient information for running a company, management accounting presents a necessity, and not an option, to companies aimed at quality management and decision-making,despite it not being prescribed by the law.

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