Introduction to Managerial Accounting: Purpose and Overview

Notes

• Managerial Accounting: Purpose and Overview Managerial accounting provides both financial and nonfinancial information to managers within an organization, as well as other decision makers. This information helps managers make informed decisions to plan, control, and evaluate operations effectively. Managers include, for example, employees in charge of a company’s divisions; the heads of marketing, information technology, and human resources; and top-level managers such as the Chief Executive Officer (CEO) and Chief Financial Officer (CFO). These individuals rely on managerial accounting data to guide their strategic and operational decisions. This section explains the purpose of managerial accounting (also called management accounting) and compares it with financial accounting.