Question

the area of accounting that involves the preparation of internal reports for a firms executives and the analysis of the data in these reports to aid in decision making is known as?

Answer 1

Answer is Management Accounting

Management accounting is application of cost accounting data for internal decision making. Management accounting uses tailor made reports based on internal requirements. It is applied in internal decision making like Make or buy, shutdown or continue, continue or discontinue of product or division, sell or process further. There are various tools of managerial accounting applied by managers in decision making like budgeting, cvp analysis, standard costing, variable costing, etc. The decisions are taken on day to day basis by managers in the firm.