definition of managerial accounting?

Answer 1

Managerial accounting is the branch of accounting designed to provide information to various management levels in the hospitality operation for the purpose of enhancing controls.

Very simply, managerial accounting is about providing information in support of the internal management processes. Many organizations simply refer to their internal accounting units as departments of strategic finance. This title is perhaps more reflective of their broad range and scope of duties.

Managerial accounting is quite different from financial accounting. External reporting rules are replaced by internal specifications as to how data are to be accumulated and presented. Hopefully, these internal specifications are sufficiently logical that they enable good economic decision making. For example, specific reporting periods may be replaced with access to real-time data that enable quick response to changing conditions. And, forecasted outcomes become much more critical for planning purposes. Likewise, cost information should be disseminated in such a way that managers can focus on (and be held accountable for!) those business components ("segments") under their locust of control.