Managerial Accounting

Managerial Accounting

What Does Managerial Accounting Mean?

The process of identifying, measuring, analyzing, interpreting, and communicating information in the pursuit of a company's business goals. Also known as cost accounting.

Investopedia explains Managerial Accounting

The key difference between managerial accounting and financial accounting is that managerial accounting is intended to help managers within the organization make decisions. In contrast, financial accounting is intended to provide information to parties outside the organization.

Related Terms:
• Accrual Accounting
• Earnings
• Generally Accepted Accounting Principles—GAAP
• Off-Balance-Sheet Financing
• Operating Leverage