Management accounting · Subject guide
Use accounting to make better decisions.
Study how managers use financial and operational information for planning, control and decision-making.
Your route through management accounting
Work through these stages in order, or open the topic you are reviewing for class.
01 · Foundations
Understand the manager’s questions
Learn the purpose, scope and techniques of management accounting.
02 · Analysis
Connect costs, volume and profit
Explore contribution, break-even reasoning and changes in activity.
03 · Planning and control
Turn plans into useful comparisons
Work through budgeting and then explore variances between plans and outcomes.
Put the lesson into practice
Work through a break-even and CVP example · Compare static and flexible budgets
For each problem, write down the assumptions, identify the relevant costs and explain what your result means before choosing a decision.
Study with a purpose
- Read one lesson and summarize its central idea.
- Write an example without copying the solution.
- Check each step and keep a note of the mistake you corrected.
Need a definition? Use the accounting glossary. Want a quick check? Choose an accounting quiz.