Final answer:
The statement is true as management accounting involves processes to aid managers in decision-making through financial and nonfinancial information. This type of accounting is focused internally and is used for operational planning, control, and strategic decisions.
Step-by-step explanation:
True, management accounting indeed encompasses the process of identifying, measuring, accumulating, analyzing, preparing, and communicating financial and nonfinancial information utilized by management.
Management accounting plays a critical role in aiding managers to make informed business decisions. Unlike financial accounting, management accounting is focused on internal processes and is not governed by external reporting standards. Its primary objective is to accumulate data that is beneficial for the internal operational planning, control, and decision-making processes.
Examples of management accounting practices include budgeting, forecasting, cost analysis, and performance evaluation. Management accountants often use this information to create financial reports that are tailored to the needs of the company's management team, thereby providing them with the insights needed to make strategic business decisions.