Managerial accounting is a branch of accounting aimed at providing financial and economic information to internal decision makers of an organization. It is a specialized support service that provides both financial and non-financial performance information to assist managers in making informed decisions and in formulating plans and strategies related to the organization.

The scope of managerial accounting is broad and wide-ranging in nature. Its primary function is to equip management with relevant facts and figures that they need to make prompt decisions. Managerial accounting is more focused on analysis and interpretation of the collected data related to an organization. Unlike the financial accounting standards, which require strict adherence to the Generally Accepted Accounting Principles (GAAP), managerial accounting principles are more flexible and provide more room to customize the collection and presentation of financial data tailored to the organization’s particular needs.

Managerial accounting encompasses a variety of activities such as operational analysis, cost accounting, budgeting, and variance analysis. On the other hand, financial accounting is limited to the preparation of financial statements, which include the balance sheet, income statement, statement of changes in stockholders' equity, and statement of cash flows.

One of the objectives of managerial accounting is to provide management with relevant information needed to assess key performance indicators (KPIs) and to consider important trends and the impact of changes in the organization. This assistance is offered in several forms such as strategic cost management, performance measurement, investment appraisal, and supply chain management.

Managerial accounting is also known as cost or managerial finance. It is the process of providing financial and economic data to managers and leaders of an organization. By using this information, organizational management can make informed business decisions regarding the allocation of resources and the development of policies that would be beneficial to their organization’s future. This information is used to evaluate and compare the efficiency, effectiveness, and productivity of different parts of the business.

Managerial accounting provides information necessary for decision making, planning and the control of operations. Its primary goal is to help managers in understanding the nature and behavior of company costs, from which they can make better-informed decisions in terms of budgeting, pricing, product design, inventory management and customer service. Managerial accounting provides the essential know-how for problem-solving and decision-making, and it is a cornerstone for successful businesses.

In summary, managerial accounting is a necessary tool for businesses of all sizes and in all industries. Its primary purpose is to provide financial information to managers and/or leaders to help them make informed business decisions. Managerial accounting covers a wide range of topics, including operational analysis, cost accounting, budgeting, and variance analysis. By utilizing advanced techniques and taking advantage of the flexibility that managerial accounting provides, organizations can make more effective decisions and compete in today’s always-changing marketplace.