According to the American Accounting Association, accounting is “the process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of the information”. In simpler terms management accounting is an essential factor within any business as it can be utilised to record and summarize an organisations overall performance levels and finances. This allows the manager to set up and implement the correct funding/ processes needed to achieve its maximum success capabilities. Management accounting identifies and measures the success levels of previous decisions made within the management system, as a result this allows the manager to ascertain and forecast what specific areas will need to be adjusted before the processes are put into practice. There are a number of key tools within management accounting that can aid managers in their decision making, these are known as budgeting and forecast reports, profit and loss sheets and cash flow forecasting

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