Management Accounting

AccountingAdvanced Level

10 flashcards

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Question

What is the primary purpose of management accounting?

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Answer

Definition

The primary purpose of management accounting is to provide internal stakeholders with relevant financial and operational information to aid in decision-making.

Example

For instance, a company may use management accounting to evaluate the profitability of a new product line before launching it.

Quick Tip

Think 'inside' the organization for decision-making.

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