Definition of Management Accounting
According to the Chartered Institution of Control Agency (CIMA), Control Sales is "the procedure of recognition, statistic, build up, research, planning, decryption and interaction of information used by management to plan, consider and control within an company and to guarantee appropriate use of and responsibility for its options. Control accounting also consists of the planning of financial statements for non-management categories such as investors, lenders, regulating companies and tax authorities"(CIMA Formal Terminology).
The Institution of Control Agency (IMA) lately modified its description as follows: "management accounting is a occupation that includes joining up in management selection, creating planning and overall performance management systems, and offering experience in financial confirming and control to assist management in the method and rendering of an company''s strategy".
The National Institution of Qualified Community Accountants (AICPA) declares that control sales as exercise expands to the following three areas:
Strategic Management- developing the part of the management accountants as an ideal associate in the company.
Performance Management- creating the practice of business decision-making and dealing with the efficiency of the company.
Risk Management- leading to frameworks and methods for determining, calculating, dealing with and confirming risks to the accomplishment of the goals of the organization.