Managerial accounting is a planning tool used by managers in making decisions regarding a firm’s future plan of actions. It involves close examination and consideration of the situation of the factors of production, business environment, and industry standards. Managerial accounting deals with information that the management needs to ensure smooth day-to-day operations of the organization. This information includes the available cash, the number of orders at hand, generated sales revenue, the state of account payable and receivable, raw material, outstanding debts, and the inventory. It may also include trend charts, analysis of variance, and other statistics.
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