<Dd> 2014--Chartered Institute of Management Accountants, American Institute of Certified Public Accountants . Global Management Accounting Principles (GMAPs). Two of the world's foremost accountancy bodies combined to create a new set of principles to guide best practice . </Dd> <P> Management accounting for use inside an organization must reflect the reality of the operations and resources used by the organization in monetary terms . Unlike financial reporting, where the objective focuses on external investors and creditors seek to compare investment options across the capital markets, management accounting focuses on the economic choices and constraints within an organization . There are two interrelated parts in understanding why management accounting principles are so important and how these principles help managers achieve their primary objective: enterprise optimization . </P> <P> The first principal part deals with the actual modeling of a company's operations, where the management accountant establishes and builds causal relationships based on the principle of causality and related management accounting concepts . Part two involves the principle of analogy and the manager's analytical needs for decision support information provided by part one (its cause - and - effect relationships). Part two requires analyzing the information in light of one or more decision alternatives so that the decision maker (s) can reach the optimum decision . The cumulative application of both principles (causality and analogy) achieves management accounting's objectives and fulfills the managers' needs--the optimization of the company's operations, generally referred to as enterprise optimization . </P> <P> First objective - managerial costing is: </P>

The origin role and principles of management accounting