mgt accounting entails compilation and analysis of finances which are to be used internally by managers. It is useful in decision-making, planning, budgeting, and performance evaluation. Contrary to financial accounting that targets external parties, management accounting gives attention to efficiency of operation and formulation of strategy. Generating reports may include cost, forecast as well as variance reports. This field assists organizations to make informed decisions, effectively allocate resources with a view to increase profitability by use of data-driven strategies.
