Objectives of Management Accounting

         Management Accounting seeks to provide relevant accounting information for use in planning, decision-making and control for the different levels of management at the right time.  Its main objectives may be summarized as follows:

•  Formulating strategy;
• Planning and controlling activities;
• Decision talking;
• Optimizing the use of resources;
• Disclosure to shareholders and others external to the entity;
• Disclosure to employees;
• Safeguarding assets.

The above involves participation in management to ensure that there is effective:

• Formulation of plans to meet objectives (strategic planning);
• Formulating of short-term operation plans (budgeting / profit planning);
• Acquisition and use of finance (financial management) and recording of transactions (financial accounting and cost accounting);
• Communication of financial and operating information;
• Corrective action to bring plans and results into line(Financial Control);
• Reviewing and reporting on systems and operations (internal audit, management  audit).

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