Accounting is a systematic process of identifying, recording, classifying, summarising, analysing and communicating financial information about an organisation. It provides useful information to managers, owners, investors, creditors, employees, government authorities and other stakeholders for making economic decisions. In the context of Accounting for Managerial Decisions, accounting is not limited to maintaining records of financial transactions. It also provides information required for planning, controlling operations, evaluating performance and making strategic decisions. The major objectives of accounting are as follows. 1. Systematic Recording of Transactions One of the primary objectives of accounting is to maintain a systematic and chronological record of all financial transactions of a business. Transactions such as purchases, sales, receipts, payments, expenses, incomes, assets and liabilities are recorded according to established accounting principles. Proper recording ensures that financial transactions are not forgotten or duplicated. Books such as journals, cash books, purchase books and sales books provide a structured record of business activities. 2. Determination of Profit or Loss Accounting aims to determine the financial result of business operations during a particular period. A business needs to know whether it has earned profit or suffered a loss. The trading account, profit and loss account, or statement of profit and loss helps determine the operating result. Revenue is compared with the cost and expenses incurred to generate that revenue. Information about profitability is essential for managers to evaluate business performance and make decisions regarding pricing, cost reduction, expansion and resource allocation. 3. Determination of Financial Position Another important objective is to determine the financial position of an organisation at a particular point in time. The balance sheet or statement of financial position provides information about assets, liabilities and owners’ equity. It indicates what the business owns and what it owes. This information helps management assess the financial strength, liquidity and solvency of the organisation. It also enables creditors and investors to evaluate the financial stability of the business. 4. Providing Information for Managerial Decision-Making Accounting provides relevant financial information for managerial decision-making. Managers regularly make decisions regarding pricing, production levels, product selection, investment, financing, purchasing, expansion and cost control. Managerial accounting techniques such as marginal costing, standard costing, budgeting, differential costing and cost-volume-profit analysis provide information that supports such decisions. For example, management can use cost and revenue information to determine whether a product should be continued, discontinued or produced at a different level. 5. Planning and Forecasting Accounting information provides a basis for future planning and forecasting. Past financial records help managers understand trends in sales, costs, profits, cash flows and resource utilisation. Budgets and forecasts are prepared using accounting information. A sales budget estimates future sales, a production budget estimates production