The main purpose of management accounting is to provide information to the management team at all levels within the organisation for the following purposes:
(a) formulating the policies – strategic planning
(b) planning the activities of the organisation – corporate planning
(c) controlling the activities of the organisation
(d) decision-making – long-term and tactical
(e) performance appraisal at strategic and operational level
Definition: Management accounting is the application of professional knowledge and skill in the preparation and presentation of accounting information in such a way as to assist management in the formulation of policies and in planning and controlling the operations of the organisation.