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Accounting & Tax vocabulary · Costs & Budgeting

Management accounting

Meaning in accounting & tax, with examples

nounCommon term

In accounting & tax, management accounting means: The branch of accounting that prepares internal information, such as budgets, cost analysis and performance reports, to help managers make decisions.

In Turkish: yönetim muhasebesi, yönetim raporlaması

How it is used

Contrasted with financial accounting, which prepares statements for outsiders under fixed standards. Management accountants often work in FP&A or controlling teams and follow no single standard.

Example sentences

  1. Our management accounting team produces a margin report for each product line.

  2. She moved from audit into management accounting to be closer to business decisions.

Common collocations

  • management accounts
  • management reporting
  • financial accounting
  • management accountant
  • budgetA financial plan that sets out expected income and spending for a future period, usually a year, and is used to control costs and compare actual results.
  • varianceThe difference between a planned or budgeted amount and the actual result. It is favourable if the result is better than planned and adverse if it is worse.
  • cost centerA department or unit, such as HR, IT or a production line, to which costs are assigned so that managers can track and control spending.
  • forecastAn updated estimate of future results, such as sales, costs or cash, based on actual figures so far and current expectations.
  • accountingThe work of recording, organising and reporting a business's financial transactions so that owners, managers, tax offices and investors can understand its financial position.

More terms: Costs & Budgeting

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This page explains English vocabulary for learners. It is not financial advice.