Management needs detailed information on different aspects to arrive at meaningful decisions. Financial accounting provides some information but these are not adequate. Management accounting removes these limitations of financial accounting.
Thus, management accounting means- “Accounting for Management to discharge its functions including organising, planning, directing and controlling.
Definition :- According to American Accounting Association, “Management accounting includes the methods and concepts necessary for effective planning, for choosing among alternative business actions and for control through the evaluation and interpretation of performance.”
R.N. Anthony :- Management accounting is concerned with accounting information that is useful to management