According to the Institute of Management Accountants (IMA): “Management accounting is a profession that involves partnering in management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization’s strategy.”
In simple words, it is a process which uses financial information to make a decision in the organization. It is used by internal management to make plans and have control over the system. The primary concern of Managerial Accounting is the requirement of the internal users of the organization. It involves various techniques and tools which help the management in making plans regarding the economic objectives of the organization.