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Learning Objective $01-$C$1$: Explain the roles and ethics of managerial accounting.

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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 accounting include

$(1)$ focus on internal decision makers,

$(2)$ emphasis on planning and control,

$(3)$ flexibility,

$(4)$ timeliness,

$(5)$ reliance on forecasts 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.

Purpose of Managerial Accounting