Management Accounting is the adoption and analysis of accounting information in such a way as to assist the management in policy creation and day-to-day operations of an organization. The term “Management Accounting” is composed of two words: Management and Accounting. It is a true fact that many important data for managerial use are beyond the ability of accountancy to supply- for example market demand, state of competition, general business conditions, engineering design etc. So management accounting has been originated to fulfill managerial needs by providing the said important data which normally accounting fails to supply. This is why, students understanding managerial accounting and using it is of utmost importance.

Scope of Management Accounting:

The scope of Management Accounting is very wide. Some of the areas included within the ambit of Management Accounting are:
1. General Accounting (Financial accounting) 2. Cost Accounting
3. Budgeting and forecasting
4. Cost control procedure
5. Cost and statistics
6. Taxation
7. Methods and procedures
8. Audit
9. Office services
10. Legal Provisions

Functions of Management Accounting

1. Modification of data
2. Analysis and interpretation of data
3. Facilitating management control
4. Formulation of business budgets
5. Use of qualitative information and
6. Satisfaction of informational needs of various levels of management.