Management accounting is an internal function that operates within the boundaries of a business to help managers make sound decisions, develop plans and goals, and exercise control.The basic purpose of management accounting is to help managers be better managers.Management accounting, more than anything else, involves providing useful information to managers and helping them use this information in the most effective manner.

The design of accounting reports for managers is very dependent on the nature of the business and how the business is organized.There are no authoritative standards and no generally accepted accounting standards that govern management accounting.As a result external financial statements which are prepared for outside investors and lendersare not completely adequate for management departments.In particular the external income statement is not a good explanation of the profit behavior of a company.

Part 1: Based on the above information and the information contained in your required readings as well as the video provided, what is management accounting?How can a manager use the information to make his company more efficient and profitable?Not your opinion.What does the literature say?Part 2:Your opinion.What is the benefit of management accounting?