Discuss  the characteristic of management accounting?

Management accounting refers to the practice of analyzing data & providing insights in order to make informed decisions regarding various aspects of an organization’s operations. This includes things such as budgeting, forecasting, performance measurement & strategic planning etc.; all of which can help identify areas for improvement or cost savings when implemented properly.

Characteristics of management accounting include its focus on internal rather than external stakeholders; meaning it is primarily used to aid decision-making processes within a given firm/organization. Moreover, this type of accounting also involves a more analytical approach – using techniques such as variance analysis & activity based costing (ABC) etc., in order to gain better insight into underlying trends & behaviors.

In addition, management accounting also emphasizes accountability through the establishment of key performance indicators (KPIs) that must be met in order for teams/individuals to achieve their objectives over time. Finally, another characteristic is its ability to provide timely feedback – allowing organizations to quickly adjust their strategies if needed based on actual results compared against expectations.

Overall, it is evident that management accounting offers numerous benefits in terms of providing accurate information and greater transparency with regards to financial activities occurring within an organization. Therefore proper utilization by experienced personnel can lead not only increased profitability but also improved efficiency going forward.