Characteristic Features of Management Accounting

Management accounting has certain unique features.  The important characteristic features of management accounting are explained below.

1. Accounting information which is useful to the management.
2. Management accounting supplements the financial accounting in order to serve the diverse needs of modern management.
3. Accounting designed for use in the operational needs of the business, i.e. to provide information regarding to the conduct of the various aspects of the business like cost, funds, profits, etc.
4. Efficiency is the key for management accounting system in the implementation.
5. Management accounting comprises accounting methods, system and techniques which coupled with special knowledge and ability assist management in its task of maximizing profits or minimizing losses.
6. The distinguishing feature of management accounting is its emphasis on the planning and control purposes.
7. Management accounting is an internal accounting.  It emphasizes the preparation of reports of an organization for its internal users such as presidents, top management, middle management, lower management, functional managers, etc.
8. Management accounting spreads over into related disciplines, such as economics, the decision sciences, and the behavioral sciences.
9. Management accounting provides a means of communicating management plans upward, downward and outward through the organization.
10. Management accounting supplies feedback reports for both attention getting and scorecard keeping purposes which is the most visible contribution within the organization.

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