The purpose of managerial accounting is to provide useful information to management and other internal decision makers. It does this by collecting, managing, and reporting both monetary and nonmonetary information in a manner useful to internal users. Major characteristics of managerial accouting include 1) focus on internal decision makers, 2) emphasis on planning and control, 3) flexibility, 4) timeliness, 5) reliance on forescasts and estimates, 6) focus on segments and projects, and 7) reporting both monetary and nonmonetary information. Ethics are beliefs that distinguish right from wrong. Ethics can be important in reducing fraud in business operations.

The purposes of managerial accounting are to provide useful information to aid in:

_____ reviewing past activities

_____determining costs of products and services

_____ determining costs of employee wages and salaries

______ comparting actual to planned results