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Management accounting is concerned with providing information and analysis to managers to help them plan, evaluate and control activities, in order to achieve an organisation’s objectives . Whereas financial accounting is concerned with reporting on the past financial performance of an organisation, management accounting is essentially concerned with improving its future performance. In order to understand the concepts and principles of management accounting it is necessary first to have some appreciation of what managers do! This, in turn, requires an understanding of the organisations in which managers work – and of the external environment in which these organisations exist and operate.