We can summarize the main purposes of managerial accounting information that is used within a business as follows:

• Planning: An example of planning is budgeting. Budgeting is the process of forecasting future financial needs. This process is based on the funds that the com- pany expects to collect as a result of sales and how much will be paid to purchase materials, for salaries, and wages etc.

• Decision Making: Managerial account- ing information will be helpful to evaluate various alternatives available. For example, management may be considering whether to purchase or lease an equipment.

• Control: Management also uses account- ing information to determine whether the business is operating according to its plans and identifies the differences.