How the Principles of Management Accounting Can Be Utilized

Consider the role of management accounting in relation to the company for which you work (or have worked). Discuss how the principles of management accounting can be utilized. What specific managerial accounting activities would be useful? In contrast to financial accounting, which focuses on providing historical financial information to external users, managerial accounting focuses on internal users like executives, product managers, sales managers, and any other personnel within the organization; managerial accounting uses accounting information, both historical and future projections, in order to make important decisions, to aid implementation and to monitor and control the results (Heisinger & Hoyle, 2012). Managerial accounting is not governed by any external rules, rather, the internal operators of the organization set the rules as specified by the data they need in order to make accurate projections, informed decisions, and to monitor and control results (Walther & Skousen, 2009).