What is the meaning of management account and what are it contens?

Question

What is the meaning of management account and what are it contens?

Answer 1

Management accountancy is another aspect of accountancy but differs quite a lot from standard accountancy. I assume you have an idea of what contents you may find in an account, including balance sheet, profit and loss, and the ledgers, etc. which make up the bulk of an account (in accountancy that is). Management accountancy is more concerned with the actual business i.e. the business model, forecasting budgets and profits, product quality and overall customer appeal in monetary terms. From my limited understanding, management accountancy is more concerned with the bigger issues at stake within the company though it is all phrased in financial terms. I dare say, without knowing anymore about it, that there exists significant reports, though I assume that the basic accountancy accounts are the basis upon which a company understands it's overall financial position. Management accountancy scrutinises the basic accounts which will add input into the bigger decisions the company will have to take in terms of where it would like to go in the future, how much profit would it like to make (realistically) and how will it get there. I cannot be more specific than that, I'm afraid though I hope that gives you a better overall understanding of the difference.