What is the primary purpose of management accounting?

The primary purpose of management accounting is to provide information for decision-making, planning, and control within an organization. This aspect of management accounting focuses on offering relevant data that assist management in evaluating operating performance, setting objectives, and making strategic decisions aimed at improving efficiency and effectiveness.

Management accounting encompasses budgeting, forecasting, and performance analysis, all of which are essential for internal stakeholders, such as managers and executives, who require timely and accurate data to make informed decisions. Unlike financial accounting, which is primarily geared towards external stakeholders and compliance with regulations, management accounting specifically supports the internal management process by facilitating planning and control activities.

The other options, while related to aspects of finance and accounting, do not capture the core intent of management accounting. Compliance with financial regulations and preparing financial statements are more aligned with financial accounting's responsibilities, which focus on external reporting. Monitoring expenditures and budgeting are indeed part of management practices, but they do not encompass the broader role of providing comprehensive decision-making support within an organization. Overall, the emphasis on internal management needs underlines why providing information for decision-making, planning, and control is the central aim of management accounting.