The role of management accounting is also described as problem solving, score keeping and attention directing.

Problem solving: The role of accounting in problem solving is to provide information useful in evaluating alternatives.


Scorekeeping: Scorekeeping records the results of various actions of the managers and helps in assessing whether the results expected from the various actions are realized or not.

Attention directing: The scorekeeping function in combination with expected results, and comparative analysis of scores of various companies, divisions and departments, comparative analysis of present period scores or results with previous periods show opportunities of focusing attention of managers to improve things.

Management accounting is the internal business building role of accounting and finance professionals who work inside organizations. These professionals are involved in designing and evaluating business processes, budgeting and forecasting, implementing and monitoring internal controls, and analyzing, synthesizing, and aggregating information—to help drive economic value.

The role of management accounting differs from that of public accounting, since management accountants work at the “beginning” of the value chain, supporting decision making, planning and control, while audit and tax functions involve checking the work after the fact. Management accountants are valued business partners, directly supporting an organization's strategic goals. With a renewed emphasis on good internal controls and sound financial reporting, the role of the management accountant is more important than ever.

Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions.

Role of Management Accounting-

* Breaking down of cost/expenditure into functions and processes to facilitate cost control at each operational level.
* Developing standards for all operating areas and evaluating actuals with the standards.
* Analysing overall business and operational data.
* Suggesting alternatives to improve productivity.
* Identifying areas of wastages, leakages and inefficiencies or invisible losses.
* Ensuring optimum utilisation of available resources.
* Deploying informatic tools for an efficient management information system.
* Contributing to Total Quality Management (TQM).
* Assisting in decision-making process at all cadres of management.

Hi



Managerial accounting, or management accounting, is a set of practices and techniques aimed at providing managers with financial information to help them make decisions and maintain effective control over corporate resources. For example, managerial accounting answers such questions as:
* What is the company's average cost per unit of labor (enterprise wide or within specific departments)?
* How many dollars in sales does each marketing dollar bring in?
* What is the required rate of return to make a new investment worthwhile?
* Which activities require the greatest expenditures and which earn the greatest profits (and how can the organization maximize the former and minimize the latter)?


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