2. Management activities

Management accounting system provide information specifically for the use of manageers within an organisation to support management in planning, controlling and decision-making.

Planning involves the following:

 (1) establishing objectives

 (2) selecting appropriate strategies to achieve those objectives

 Planning can be either short-term (tactical planning) or long-term

 (strategic planning).

Control involves the following:

 (1) compare actual performance with planning

 (2) review and modify the plan when it is necessary