The purpose is to provide financial and nonfinancial information to managers and other internal decision makers of an organization. Cost of products information is very important to managers when making planning and control decision. This includes predicting the future costs of producing the same or similar items. Planning is the process of setting goals and making plans to achieve them. Control-the process of monitoring planning decisions and evaluating the organization's activities and employees.
Control includes measurement and evaluation of actions, processes and outcomes.
Control feedback allows manager to take timely corrective actions to avoid undesirable outcomes. Differences Between Managerial and Financial Accounting Financial-Investors, creditors and other users external to the organization. Managerial-Managers, employees and decision makers internal to the organization. Financial-Assist external users in making investment, credit and other decisions. Managerial-Assist managers in carrying out the functions of planning, decision making and control.