Management accounting is an important factor that helps organizations to map their future directions through providing managers with necessary information for the establishment of strategies that ensures all inputs, processes, and outputs are in line with the organizational goals. Through the information provided by management accounting, managers access information that is critical in formulating policy, making comparison between alternative situations, and evaluate and examine performance. While management accounting has similar roles across organizations, the accounting procedures and techniques tend o differ significantly in the private and public sector.
Management Accounting in the Public Sector:
Management accounting in the public sector is usually conducted by the government with the main aim of protecting public treasury through preventing and identifying corruption and graft. Therefore, this process is normally geared towards facilitating and promoting sound financial management and public accountability. In an efficiently managed process, management accounting involves planning and budgeting for financial...
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