Management Accountancy Concept
Management accountancy (also designated by analytical accountancy or also internal accountancy) is one of the accountancy’s fields and that supplies information about the financial position and about the formation of results from the entity to the internal individuals, namely intermediate and top managers.
Unlike general accountancy, management accountancy is less subject to external rules, being each one of the entities to clarify its own criteria for its performance. These performance criteria of management accountancy should be established in a way to help the several management levels to take sustained decisions as to the quality, costs and processes efficiency that allow the maximization of its offer regarding quality/price.
The information produced by a management accountancy system can include, for example, the operation costs of a section or department or the production and supply cost of a product, service or activity. This way, only from the management accountancy is possible evaluate the profitability cost of a certain product, service or activity. The same way, also only with the management accountancy support is possible to evaluate the performance of an entity’s operational unit, section or department. In order that the entity becomes efficient and competitive in all of its sectors and activities, is therefore indispensable that develops and maintains a good management accountancy system, that supplies accurate and updated information about its different activities, products and services.